Ratio Analysis Model Question Paper

12th Standard EM

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Accountancy

Time : 01:30:00 Hrs
Total Marks : 50
    5 x 1 = 5
  1. The mathematical expression that provides a measure of the relationship between two figures is called

    (a)

    Conclusion

    (b)

    Ratio

    (c)

    Model

    (d)

    Decision

  2. Proportion of share holder's funds to total assets is called

    (a)

    Proprietary ratio

    (b)

    Capital gearing ratio

    (c)

    Debt equity ratio

    (d)

    Current ratio

  3. Current liabilities Rs. 40,000; Current assets Rs. 1,00,000 ; Inventory Rs. 20,000. Quick ratio is

    (a)

    1:1

    (b)

    2.5:1

    (c)

    2:1

    (d)

    1:2

  4. If both items in a ratio are from balance sheet, it is classified as

    (a)

    Inter statement ratio

    (b)

    Income statement ratio

    (c)

    Balance sheet ratio

    (d)

    All of these

  5. Which ratio is the proportion of fixed income bearing funds to equity shareholders funds?

    (a)

    Debt equity ratio

    (b)

    Capital gearing ratio

    (c)

    Proprietary ratio

    (d)

    Profitability ratio

  6. 2 x 2 = 4
  7. Assertion (A): Fixed assets turnover ratio helps to ascertain the soundness of the long term financial position of the concern.
    Reason (R): It indicates the proportion between total long term debt and shareholders funds.
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
    (b) Both (A) and (R) are true and (R) is not the
    correct explanation of (A)
    (c) (A) is true, but (R) is false
    (d) (A) is false, but (R) is true

  8. Assertion (A): Total long term debt includes Debentures, long term loans from banks and financial institutions.
    Reason (R): Shareholders funds includes Equity share capital, Preference share capital, Reserves and surplus.
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
    (b) Both (A) and (R) are true and (R) is not the correct explanation of A
    (c) (A) is true, but (R) is false
    (d) (A) is false, but (R) is true

  9. 3 x 2 = 6
  10. (a) Balance sheet
    (b) Pure
    (c) Percentage
    (d) Time

  11. (a) Income statement ratio
    (b) Inter - statement ratio
    (c) Balance sheet ratio
    (d) New profit sharing ratio

  12. (a) Liquidity ratio
    (b) Turnover ratios
    (c) Sacrificing ratio
    (d) Profitability ratios

  13. 5 x 2 = 10
  14. What is meant by accounting ratios?

  15. What is quick ratio?

  16. What does return on investment ratio indicate?

  17. State any two limitations of ratio analysis.

  18. Calculate quick ratio of Ananth Constructions Ltd from the information given below.

    Particulars Rs.
    Total current liabilities 1,00,000
    Total current assets 2,50,000
    Inventories 50,000
    Prepaid expenses 15,000
  19. 5 x 3 = 15
  20. Explain the objectives of ratio analysis.

  21. How is operating profit ascertained?

  22. State any three advantages of ratio analysis.

  23. Bring out the limitations of ratio analysis.

  24. From the following figures obtained from Kalpana Ltd, calculate the trade payables turnover ratio and credit payment period (in days).

    Particulars Rs.
    Credit purchases during 2018 – 2019 1,00,000
    Trade creditors as on 1.4.2018 20,000
    Trade creditors as on 31.3.2019 10,000
    Bills payable as on 1.4.2018 4,000
    Bills payable as on 31.3.2019 6,000
  25. 2 x 5 = 10
  26. Following is the statement of profit and loss of Maria Ltd. for the year ended 31st March, 2018.
    Calculate the operating cost ratio.

    Statement of Profit and Loss
    Particulars Note No. Amount
    Rs.
    I. Revenue from operations   8,00,000
    II. Other Income   20,000
    III. Total revenue (I +II)   8,20,000
    IV. Expenses:    
    Purchases of stock-in-trade   4,50,000
    Changes in inventories   -40,000
    Employee benefits expenses 1 22,000
    Other expenses 2 68,000
    Total expenses   5,00,000
    V. Profit before tax (III-IV)   3,20,000
    Notes to Accounts
    Particulars Amount
    Rs.
    1. Employee benefits expenses  
    Wages (direct) 10,000
    Salaries 12,000
    Total 22,000
    2. Other expenses 20,000
    Selling and distribution expenses 28,000
    Loss on sale of fixed asset 20,000
    Total 68,000
  27. Following is the balance sheet of Lakshmi Ltd. as on 31st March, 2019:

    Particulars Rs.
    I EQUITY AND LIABILITIES  
    1. Shareholders’ funds  
    Equity share capital 4,00,000
    2. Non-current liabilities 2,00,000
    Long term borrowings  
    3. Current liabilities  
    (a) Short-term borrowings 50,000
    (b) Trade payables 3,10,000
    (c) Other current liabilities  
    Expenses payable 15,000
    (d) Short-term provisions 25,000
    Total 10,00,000
    II ASSETS  
    1. Non-current assets  
    (a) Fixed assets 4,00,000
    Tangible assets  
    2. Current assets  
    (a) Inventories 1,60,000
    (b) Trade debtors 3,20,000
    (c) Cash and cash equivalents 80,000
    (d) Other current assets  
    Prepaid expenses 40,000
    Total 10,00,000

    Calculate:
    (i) Current ratio
    (ii) Quick ratio

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