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#### Ratio Analysis Model Question Paper

12th Standard EM

Reg.No. :
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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:
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
(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
(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