Accounting Ratios MCQ Question Answers suitable for CUET 2025 from Class 12 Accountancy Chapter 5

To score full marks in the CUET 2025 Accountancy exam, Practice Class 12 Accountancy Chapter 5 Accounting Ratios MCQ Test any number of times free on our website. These questions have been created by our experts from the latest Class 12 Accountancy Syllabus and as per latest exam pattern. Multiple Choice Questions (MCQs) are a type of objective assessment in which a person is asked to choose one or more correct answers from a list of available options. An MCQ presents a question along with several possible answers. Most of the exams in India including the CUET exam conduct an online test to check your knowledge.

Class 12 Accountancy Chapter 5 MCQs

1. There is no universal yardstick which specifies the level of ideal ratios. There is no standard list of the levels universally acceptable, and, in India, the industry averages are also not available. This Statements Relates to ________ of Ratio.
a.
b.
c.
d.

2. When opening stock is Rs. 50,000 closing stock Rs. 60,000 and cost of goods sold is Rs. 2,20,000, then stock turnover ratio is:
a.
b.
c.
d.

3. Highmoney Finance Co. extends Its credit terms of 40 days to its customers. Its credit collection would be considered poor if its average collection period was
a.
b.
c.
d.

4. It refers to the analysis of profits in relation to revenue from operations or funds (or assets) employed in the business and the ratios calculated to meet this objective are known as ______
a.
b.
c.
d.

5. ______are especially interested in the average payment period, since it provides them with a sense of the bill-paying patterns of the firm.
a.
b.
c.
d.

6. Which one is Advantage of Ratio Analysis?
a.
b.
c.
d.

7. Which Analysis Pertains to Comparison Of a firm Present Ratio With its past Ratios?
a.
b.
c.
d.

8. Financial statements prepared by a business enterprise in the corporate sector are published and are available to the ______
a.
b.
c.
d.

9. Quick Assets Include all Current Assets which are quickly convertible into cash but it Excludes
a.
b.
c.
d.

10. Interest Coverage Ratio = Net Profit before Interest Tax / ______
a.
b.
c.
d.

11. Tenzin Ltd. Which is Finance Based Ecommerce Company has a current ratio of 3.5:1 and quick ratio of 2:1. If excess of current assets over quick assets represented by inventories is Rs. 24,000, What will be the value of current assets?
a.
b.
c.
d.

12. Book Value per share = _________/Number of Equity Shares
a.
b.
c.
d.

13. The _______ratios provide the information critical to the long-run operation of the firm
a.
b.
c.
d.

14. It is a Significance of Inventory Turnover Ratio n?
a.
b.
c.
d.

15. Gross profit ratio of a company was 25%. Its credit revenue from operations was Rs. 20,00,000 and its cash revenue from operations was 10% of the total revenue from operations. If the indirect expenses of the company were Rs. 50,000, calculate its net profit ratio.
a.
b.
c.
d.

16. Current Ratio is 3:4, Current Liabilities Rs. 24000, the amount of current assets will be____
a.
b.
c.
d.

17. Higher the ______ More Favourable it is to the company Ratio.
a.
b.
c.
d.

18. Question
a.
b.
c.
d.

19. Credit Sales Rs. 700000, Cash Sales Rs. 100000. Cost of Revenue from Operations is Rs. 640000, then Gross Profit Ratio will be_______
a.
b.
c.
d.

20. The ______ is useful in evaluating credit and collection policies.
a.
b.
c.
d.


 

 

To summarize, revising for free using our MCQs on Class 12 Accountancy Chapter 5 Accounting Ratios is highly beneficial for scoring full marks on the CUET 2025 Accountancy exam. We provide a sophisticated online test platform tailored for unlimited practice through proficiently crafted questions built on the most recent syllabus and exam pattern. Practicing MCQs regularly will boost conceptual understanding as they are significant for objective assessments. Start practicing now to succeed in your CUET 2025 Accountancy exam!

Also See : 

Class 12 Accountancy Part 1

Accounting for share capital MCQs Class 12 Accountancy Chapter 1 (Part 1)

Accounting for partnership: basic concepts MCQs Class 12 Accountancy Chapter 2 (Part 1)

Financial statements of a company MCQs Class 12 Accountancy Chapter 3 (Part 1)

Analysis of financial statements MCQs Class 12 Accountancy Chapter 4 (Part 1)

Cash flow statement MCQs Class 12 Accountancy Chapter 6 (Part 1)

Class 12 Accountancy Part 2

Accounting for not for profit organisation MCQs Class 12 Accountancy Chapter 1 (Part 2)

Issue and redemption of debentures MCQs Class 12 Accountancy Chapter 2 (Part 2)

Reconstitution of a partnership firm – admission of a partner MCQs Class 12 Accountancy Chapter 3 (Part 2)

Retirement/death of a partner MCQs Class 12 Accountancy Chapter 4 (Part 2)

Dissolution of partnership firm MCQs Class 12 Accountancy Chapter 5 (Part 2)