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Published on: 25/10/2025
Download CBSE Class 12th Standard CBSE Accountancy question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 12th Standard CBSE Accountancy
Questions + Answers key
Take MCQ Accountancy Test
1.
The two basic measures of operational effieiency of a company are
Inventory Turnover Ratio and Working Capital Turnover Ratio
Liquid Ratio and Operating Ratio
Liquid Ratio and Current Ratio
Gross Profit Margin and Net Profit Margin
2.
Assertion (A) : Increasing the value of closing inventory increases profit.
Reason (R) : Increasing the value of closing inventory reduces cost of goods sold.
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct reason of Assertion (A)
Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct reason of Assertion (A)
Only Reason (R) is correct
Both Assertion (A) and Reason (R) are wrong
3.
What will be the amount of gross profit of a firm if its average inventory is ₹80,000, inventory turnover ratio is 6 times, and the selling price is 25% above cost?
₹1,20,000
₹2,00,000
₹1,60,000
None of these
4.
If total sales is ₹2,50,000 and credit sales is 25% of cash sales. The amount of credit sales is
₹ 50,000
₹ 2,50,000
₹ 16,000
₹ 3,00,000
5.
Assertion (A) : A high debt-equity ratio is risky.
Reason (R) : It may put the firm into difficulty to pay long-term debts.
Assertion (A) is correct, but Reason (R) is wrong
Both Assertion (A) and Reason (R) are correct
Assertion (A) is wrong, but Reason (R) is correct
Both Assertion (A) and Reason (R) are wrong
6.
What will be the impact of issuing ₹ 5,00,000 equity share to vendor for building purchased on the debt and equity of X Ltd.?
Debt will increase and equity will decrease.
Debt will remain same and equity will increase.
Debt will decrease and equity will increase.
Debt will remain same and equity will decrease.
7.
From the following calculate interest coverage ratio Net profit after tax ₹ 12,00,000 ; 10 % debentures ₹ 1,00,00,000; tax rate 40 %
1.2 times
3 times
5 times
2 times
8.
Debt-equity ratio of Dhamaka Ltd is 3 :1. Which of the following will result in decrease in this ratio?
Issue of debentures for cash of Rs.2,00,000
Issue of debentures of Rs.3,00,000 to vendors from whom machinery was purchased
Goods purchased on credit of Rs.1,00,000
Issue of equity shares of Rs. 2,00,000
9.
While preparing cash flow statement,match the following activities
| Column I | Column II |
| A. Payment of cash to acquire debenture by an investing company | (i) Financing activity |
| B. Purchase of goodwill | (ii) Investing activity |
| C. Dividend paid by manufacturing Company | (ii) Operating activity |
| A | B | C |
| (i) | (ii) | (iii) |
| A | B | C |
| (ii) | (i) | (iii) |
| A | B | C |
| (iii) | (ii) | (i) |
| A | B | C |
| (iii) | (i) | (ii) |
10.
From the following information find out the inflow of cash by sale of office equipments.
| 31st Marclh, 2022?(₹) | 31st Mareh, 2021 (₹) | |
| Office Equipment | 2,00,000 | 3,00,000 |
Additional Information : Depreciation for theyear 2021-22 was ₹40,000.
Purchase of office equipment purchased during the year ₹30,000.
Part of office equipment sold at a profit of ₹12,000.
₹ 1,00,000
₹ 1,02,000
₹ 90,000
₹ 1,12,000
11.
Insurance claim received by Albert Co. Ltd. of ₹ 5,00,000 for loss of machinery due to theft will be recorded in cash flow statement in which of the following manner?
Added under operating activities as extraordinary item and subtracted from operating activities also.
Subtracted under operating activities as extraordinary item and added to operating activities also.
Added under operating activities as extraordinary item and outflow under investing activity also.
Subtracted under operating activities as extraordinary item and inflow under investing activities also.
12.
While preparing cash flow statement, 'interest received' by a finance company is classified as
Financing activity
Operating activity
Investing activity
Cash and cash equivalents
13.
Aditya Sunrise Ltd. provides you the following information
| Particulars | 31st March, 2023 (₹) | 31st March, 2022 (₹) |
| 10% Bank Loan | Nil | 1,00,000 |
Additional Information
(i) Equity share capital raised during the year ₹3,00,000.
(ii) 10% bank loan was repaid on 1st April, 2022.
(iii) Dividend received during the year was ₹ 20,000.
(iv) Dividend proposed for the year 2021-22 was ₹ 50,000 but only ₹ 20,000 was approved by the shareholders.
Find out the cash flow from financing activities.
₹1,50,000
₹2,00,000
₹1,70,000
₹1,80,000
14.
Statement I : Sale of marketable securities will result in no flow of cash.
Statement II : Debentures issued as collateral security will result in inflow of cash.
Both statements are correct
Both statements are incorrect
Statement I is correct and Statement II is incorrect
Statement II is incorrect and Statement I is correct
15.
Surya Ltd had investment on Rs.1,08,000 as on 31st March, 2.016 and investment on Rs.3,36,000 as on 31st March, 2017. During the year, Surya Ltd sold 8.0% of it's investment being held in the beginning of period at a profit on Rs.1,34,000. Determine cash flow from investing activity.
Rs.5,42,400
Rs.2,06,400
Rs.6,10,000
None of the above
16.
City pulse Ltd took a loan from financing company in the year 2016 for Rs.25,00,000 and balance at the starting of 2017 financial year, i.e. on 1st April, 2017 was Rs.15,000 What kind of activity and amount has been transacted?
Rs.(10,00,000) has been inflown, i.e. amount is paid to financing company
Rs.(10,00,000) has been outflown, i.e. amount is paid to financing company
Rs.(10,00,000) has been outflow, i.e. amount is received from financing company
None of the above
17.
Shri Niwas Ltd has the opening balance of furniture Rs.4,00,000 and closing balance Rs.4,20,000 and depreciation opening and closing balance Rs.4,20,000 and Rs.During the year, a furniture costing Rs.40,000 with its accumulated depreciation on 24,000 was sold for Rs.20,000 Calculate purchase value of furniture
Rs.40,000
Rs.50,000
Rs.(60,000)
Rs.76,000
18.
Opening balance and closing balance of investment was Rs.10,00,000 and Rs.20,000 respectively for Vimal Ltd. Half of the investment held in the beginning of the year were sold at 2.0% profit. Calculate purchase value of investment?
Rs.(10,00,000)
Rs.(15,00,000)
Rs.(20,00,000)
Rs.(6,00,0.00)
19.
Following is the extract from the balance sheet of ABC Ltd.
| Particulars | 31st March, 2017(Rs.) | 31stMarch, 2016(Rs.) |
|---|---|---|
| Surplus, i.e. balance in statement of profit and loss | 4,50,000 | 3,00,000 |
| Proposed dividend | 1,75,000 | 1,50,000 |
Calculate net profit before tax and extraordinary items.
Rs.3,00,000
Rs.1,25,000
Rs.3,25,000
Rs.1,75,000
20.
Calculate operating ratio, if Cost of revenue from operations Rs. 50,000, Revenue from operations Rs. 1,50,000 and Operating expenses Rs. 20,000.
45%
46.7%
48.1%
42.2%
21.
Consider the following information.
Long-term borrowings Rs.2,00,000
Long-term provision Rs.1,00,000
Current liabilities Rs.50,000
Non-current assets Rs.3,60,000
Current assets Rs.90,000
Proprietary ratio will be
22.2%
21.8%
36%·
None of the above
22.
The credit sale of Mis Dinesh & Sons is Rs.21,00,000, It's debtors and bills receivables at the end of the accounting period amounted to . Rs.2,00,000 and Rs. 1,50,000 respectively. What will be the debtor's turnover ratio?
4 times
5 times
6 times
7 times
23.
Test of solvency of a business undertaking means
its ability to meet the interest costs
its ability to meet the long-term liabilities as and when they become due
its ability to pay dividends to equity shareholders
All of the above
24.
Bank overdraft will be shown under which heading
Investing activities
Financing activities
Cash and cash equivalents
Operating activities
25.
Which of the following is not considered as Cash Equivalents?
short term deposits in bank
commercial papers
treasury bills
investment
26.
| Year Amount | 2020 (in Rs.) | 2019 (in Rs.) | 2018 (in Rs.) |
| Outstanding Expenses | 50,000 | 40,000 | 25,000 |
| Prepaid Expenses | 3,00,000 | 2,50,000 | 3,50,000 |
| Trade Payables | 18,00,000 | 16,00,000 | 14,00,000 |
| Inventory | 11,00,000 | 10,00,000 | 11,00,000 |
| Trade Receivables | 12,00,000 | 8,00,000 | 10,00,000 |
| Cash in Hand | 17,00,000 | 12,00,000 | 15,00,000 |
| Revenue from Operations | 24,00,000 | 18,00,000 | 20,00,000 |
| Gross Profit Ratio | 12% | 15% | 18% |
(i) Current ratio for the year 2020 will be ____.
(a) 2:1
(b) 1.8:1
(c) 2.32:1
(d) 2.4:1
(ii) Quick ratio for the year 2018 will be ______.
(a) 1.75:1
(b) 1.8:1
(c) 0.94:1
(d) 1.25:1
(iii) Inventory turnover ratio for the year 2020 will be
(a) 1.62 times
(b) 1.82 times
(c) 1.55 times
(d) 1.92 times
(iv) Cost of revenue from operations for the year 2020 would be _____.
(a) ₹21,12,000
(b) ₹21,13,000
(c) ₹21,15,000
(d) ₹21,17,000
27.
Krishika an alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items
| S.no | Particulars | Amt (₹) |
| 1 | Gain on sale of fixed tangible assets | 12,50,000 |
| 2. | Goodwill written-off | 7,80,000 |
| 3. | Transfer to general reserve | 8,75,000 |
| 4. | Provision for taxation | 4,37,500 |
Additional Information
| Particulars | 31st March, 2020 (₹) | 31st March, 2019 (₹) |
| Prepaid Expenses | 7,50,000 | 5,00,000 |
| Inventory | 10,50,000 | 8,20,000 |
| Trade Payables | 4,50,000 | 3,50,000 |
| Trade Receivables | 6,20,000 | 5,90,000 |
(i) Net profit before tax will be ______.
(a) ₹ 22,50,000
(b) ₹ 35,62,500
(c) ₹ 39,67,500
(d) ₹ 44,37,500
(ii) Operating profit before working capital changes will be ______.
(a) ₹ 52,17,500
(b) ₹ 64,67,500
(c) ₹ 39,67,500
(d) ₹ 39,69,500
(iii) Cash flow from operating activities before tax will be ______.
(a) ₹ 35,57,500
(b) ₹ 40,67,500
(c) ₹ 37,87,500
(d) ₹ 35,67,300
(iv) Cash flow from operating activities will be ______.
(a) ₹ 39,95,000
(b) ₹ 31,20,000
(c) ₹ 40,67,500
(d) ₹ 31,00,000
1.
(a)
Inventory Turnover Ratio and Working Capital Turnover Ratio
2.
(a)
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct reason of Assertion (A)
3.
(a)
₹1,20,000
4.
(a)
₹ 50,000
5.
(b)
Both Assertion (A) and Reason (R) are correct
6.
(b)
Debt will remain same and equity will increase.
7.
(b)
3 times
8.
(d)
Issue of equity shares of Rs. 2,00,000
9.
(c)
| A | B | C |
| (iii) | (ii) | (i) |
10.
(b)
₹ 1,02,000
11.
(d)
Subtracted under operating activities as extraordinary item and inflow under investing activities also.
12.
(b)
Operating activity
13.
(d)
₹1,80,000
14.
(c)
Statement I is correct and Statement II is incorrect
15.
(b)
Rs.2,06,400
16.
(b)
Rs.(10,00,000) has been outflown, i.e. amount is paid to financing company
17.
(c)
Rs.(60,000)
18.
(b)
Rs.(15,00,000)
19.
(b)
Rs.1,25,000
20.
(b)
46.7%
21.
(a)
22.2%
22.
23.
(d)
All of the above
24.
(b)
Financing activities
25.
26.
(i) (c) Current Ratio = Current Assets/Current Liabilities
\(= \frac{43,00,000}{18,50,000} =2.32 : 1\)
Current Assets = Prepaid Expenses + Inventory + Trade Receivables + Cash in Hand
= 3,00,000 + 12,00,000 + 11,00,000 + 17,00,000 = Rs.43,00,000
Current Liabilities = Outstanding Expenses + Trade Payables
= 50,000 +18,00,000 = Rs.18,50,000
(ii) (a) Quick Ratio = Liquid Assets/Current Liabilities
\(= \frac{25,00,000}{14,25,000} = 1.75: 1\)
Liquid Assets = Trade Receivables + Cash in Hand
=10,00,000 + 15,00,000 = Rs.25,00,000
Current Liabilities = Outstanding Expenses + Trade Payables
= 25,000 + 14,00,000 = Rs. 14,25,000
(i) (d) Inventory Turnover Ratio (2020) = Cost of Revenue from Operations/Average Inventory
\(= \frac{21,12,000}{l1,00,000} = 1.92\) times
Average Inventory = Opening lnventory + Closing Inventory/2
\(= \frac{10,00,000+ 12,00,000}{2}\) = Rs. 1,00,000
(iv) (a) Cost of Revenue front Operations (2020)
Revenue trom Operation = 24,00,000
(-) Gross Profit (24,00,000 x 12/100) = (2.88,000)
= 21,12,000
27.
(i) (d) ₹ 44,37,500
| Amt (Rs) | |
| Net profit after tax | 31,25,000 |
| (+) Transfer to reserves | 8,75,000 |
| (+) Provision for Tax | 4,37,500 |
| = 44,37,500 |
(ii) (c) ₹ 39,67,500
| Amt (Rs) | |
| Net profit after tax | 44,37,500 |
| (+) Goodwill written-off | 7,80,000 |
| (-) Gain on sale of fixed tangible asset | (12,50,000) |
| Operating profit before working capital changes | = 39,67,500 |
(iii) (a) ₹ 35,57,500
| Particulars | Amt (Rs) | |
| Operating Profit before Working Capital Changes | 39,67,500 | |
| (+) Decrease in Current Assets and Increase in Current Liabilities | ||
| Trade payable | 1,00,000 | |
| (-) Increase in Current Assets and Decrease in Current Liabilities | ||
| Prepaid Expenses | (2,50,000) | |
| Inventory | (2,30,000) | |
| Trade Receivables | 30,000 | (5,10,000) |
| 35,57,500 |
(iv) (b) ₹ 31,20,000
| Amt (Rs) | |
| Cash flow from operating activities before tax | 35,57,500 |
| (-) Tax | (4,37,500) |
| Cash flow from operating activities after tax | = 31,20,000 |
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