ICSE XII/MCQ Questions for Class 12 Accountancy set-10 Sample Test,Sample questions

Question:
Cash from operating activities will decrease due to :

1.Increase in Current Assets

2. Decrease in Current Liabilities

3.Neither of the two

4.Both (a) and (b)

Posted Date:-2022-10-27 00:53:17


Question:
Cash sales in :

1.Operating Activity

2.Investing Activity

3. Financing Activity

4.None of these

Posted Date:-2022-10-27 00:52:46


Question:
Cost of goods sold :

1.Sales – Net profit

2.Sales – Gross profit

3.Purchases – Opening Stock

4. None of the above

Posted Date:-2022-10-26 20:37:46


Question:
Current Ratio =

1.Current Assets/Current Liabilities

2.Liquid Assets/Current Liabilities

3.Liquid Assets/Current Assets

4.Fixed Assets/Current Assets

Posted Date:-2022-10-26 22:35:36


Question:
Current Ratio includes:

1. Stock

2. Debtors

3.Cash

4. All of these

Posted Date:-2022-10-26 22:35:04


Question:
Debt-equity ratio is :

1. Liquidity Ratio

2. Activity Ratio

3.Solvency Ratio

4. Operating Ratio

Posted Date:-2022-10-27 00:46:37


Question:
Equity share capital ₹ 15,00,000
Reserve and Surplus ₹ 7,50,000
Total Assets ₹ 45,00,000
Properletory Ratio ?

1.50%

2. 33.3%

3.200%

4. 60%

Posted Date:-2022-10-26 20:25:00


Question:
If net profit is 7 50,000 after writing off goodwill 7 10,000 then the cash flow from operating activities will be:

1.₹ 60,000

2. ₹ 40,000

3. ₹ 50,000

4. ₹ 30,000

Posted Date:-2022-10-27 00:51:48


Question:
If net profit is ₹ 35,000 after writing off good will ₹ 6,000 and loss on sale of furniture ₹ 1,000, cash flow from operating activities will be :

1.₹ 35,000

2.₹ 42,000

3.₹ 29,000

4.₹ 28,000

Posted Date:-2022-10-27 00:52:18


Question:
Issue of shares in consideration of purchase of plant and machinery results into :

1.Inflow of Cash

2.Outflow of Cash

3.Neither Inflow nor Outflow

4. None of these

Posted Date:-2022-10-27 00:50:38


Question:
Liquid Assets include :

1.Bills Receivable

2. Debtors

3.Cash Balance

4.All of these

Posted Date:-2022-10-26 22:36:02


Question:
Liquid Ratio is also known as:

1.Current Ratio

2.Quick Ratio

3. Capital Ratio

4. None of these

Posted Date:-2022-10-27 00:40:44


Question:
Operating Ratio is:

1. Profitability Ratio

2. Activity Ratio

3. Solvency Ratio

4.None of these

Posted Date:-2022-10-26 20:27:35


Question:
Preparation of cash flow statement is :

1.Mendatory

2.Recommendatory

3.Required under the Companies Act

4. None of these

Posted Date:-2022-10-27 00:50:01


Question:
Profitability Ratio is generally shown in :

1.Simple Ratio

2. Percentage

3.Times

4. None of these

Posted Date:-2022-10-26 20:40:17


Question:
Profitability Ratios are generally expressed in :

1. Simple Ratio

2.Percentage

3.Times

4.None of these

Posted Date:-2022-10-26 20:26:03


Question:
Proprietory Ratio indicates the relationship between proprietor’s funds and….

1.Reserve

2.Share Capital

3. Total Assets

4.Debentures

Posted Date:-2022-10-26 10:07:48


Question:
Ratio based on figures of profit & loss as well a the Balance sheet are:

1.Profitability Ratios

2.Operation Ratio

3.Liquidity Ratio

4.Composite Ratio

Posted Date:-2022-10-26 20:35:32


Question:
Stock turnover ratio comes under :

1.Liquidity Ratio

2. Profitability Ratio

3.Activity Ratio

4.None of these

Posted Date:-2022-10-26 22:34:12


Question:
The following groups of ratios primarily measure risk

1. Liquidity, activity and profitability

2. Liquidity, activity and common stock

3. Liquidity, activity and debt

4. Activity, debt and profitability

Posted Date:-2022-10-26 20:30:03


Question:
The formula for finding out Debt-Equity Ratio is:

1. Long-term Debts/Shareholders’ Funds

2.Debentures/Equity Capital

3.Net Profit/Total Capital

4. None of these

Posted Date:-2022-10-27 00:47:12


Question:
The gross profit ratio is the ratio of gross profit to :

1.Net Cash Sales

2. Net Credit Sales

3.Closing Stock

4. Net Total Sales

Posted Date:-2022-10-26 20:27:03


Question:
The ideal current ratio is :

1.2 : 1

2. 1 : 2

3.3 : 2

4. 3 : 4

Posted Date:-2022-10-26 20:39:02


Question:
The ideal liquid ratio is :

1. 2 : 1

2.1 : 1

3.5 : 1

4.4 : 1

Posted Date:-2022-10-26 20:38:24


Question:
The ratios are primarily measures of earning capacity of the business.

1. Liquidity

2. Activity

3.Debt

4. Profitability

Posted Date:-2022-10-26 20:26:34


Question:
The satisfactory ratio between internal and external equity is. :

1. 1 : 2

2.2 : 1

3. 3 : 1

4.4 : 1

Posted Date:-2022-10-26 22:34:37


Question:
The term ‘Current Liabilities’ does not include: .

1.Sundry Creditors

2. Debentures

3.Bills Payable

4.Outstanding Expenses

Posted Date:-2022-10-27 00:39:35


Question:
The term fixed assets include :

1.Cash

2.Machinery

3.Debtors

4. Prepaid Expenses

Posted Date:-2022-10-26 20:34:46


Question:
The term‘Current Assets’include

1.Long-term Investment

2.Short-term Investment

3.Furniture

4.Preliminary Expenses

Posted Date:-2022-10-27 00:40:11


Question:
The two basic measures of liquidity are :

1.Inventory Turnover and Current Ratio

2. Current Ratio and Liquid Ratio

3.Current Ratio and Average Collection Period

4.Current Ratio and Debtors Turnover Ratio

Posted Date:-2022-10-27 00:39:07


Question:
To know the return on investment, by capital employed we mean:

1.Net Fixed Assets

2.Current Asset-Current Liabilities

3.Gross Block

4. Fixed Assets + Current Assets-Current Liabilities

Posted Date:-2022-10-26 20:34:16


Question:
To test the liquidity of a concern which of the following ratios is useful ?

1.Capital Turnover Ratio

2.Acid Test Ratio

3.Stock Turnover Ratio

4. Net Profit Ratio

Posted Date:-2022-10-27 00:41:12


Question:
Total Assets ₹ 7,70,000
Total Liabilities ₹ 2,60,000
Current Liabilities ₹ 40,000
Total Assets to Debt Ratio is:

1. 3.5 : 1

2. 2.56 : 1

3. 2.8 : 1

4.3 : 1

Posted Date:-2022-10-26 20:25:32


Question:
Total Assets ₹ 8,10,000
Total Liabilities ₹ 2,60,000
Current Liabilities ₹ 40,000
Debt-equity ratio is:

1. 0.05 : 1

2. 0.4 : 1

3.2.5 : 1

4. 4 : 1

Posted Date:-2022-10-26 20:24:35


Question:
What does Creditors Turnover Ratio take into account:

1. Total credit purchases

2. Total credit sales

3. Total cash sales

4.Total cash purchases

Posted Date:-2022-10-26 20:36:51


Question:
When Cash is 7 10,000 Stock is 7 25,000, B/R is 7 5,000 Creditors is 7 22,000 and Bank Overdraft is 7 8,000 then current ratio is :

1. 2 : 1

2. 4 : 3

3.3 : 4

4. 1 : 2

Posted Date:-2022-10-26 22:36:55


Question:
When Financial Statements of two or more organisations are analysed, it is called :

1. Intra-firm Analysis

2.Inter-firm Analysis

3.Vertical Analysis

4.None of these

Posted Date:-2022-10-26 10:05:43


Question:
When opening stock is ₹ 50,000 closing stock ₹ 60,000 and cost of goods sold is ₹ 2,20,000, then stock turn over ratio is:

1.2 times

2.3 times

3.4 times

4. 5 times

Posted Date:-2022-10-26 20:36:13


Question:
Which of the following assets is not taken into consideration in calculating acid-test ratio ?

1.Cash

2.Bills Receivable

3.Stock

4. None of these

Posted Date:-2022-10-26 22:36:27


Question:
Which of the following is a type of Financial Analysis on the basis of material used ?

1.Internal Analysis

2.External Analysis

3.Internal Audit

4. Both (a) and (b)

Posted Date:-2022-10-26 10:07:07


Question:
Which of the following is an example of Cash Flow from Operating Activities ?

1.Purchase of Machinery

2.Issue of Shares

3. Purchases of Inventory for Cash

4. Purchases of Investment

Posted Date:-2022-10-27 00:53:49


Question:
Which of the following is an operating’ income ?

1.Sale of Merchandise

2.Interest Income

3.Dividend Income

4. Profit on the sale of old car

Posted Date:-2022-10-26 20:28:04


Question:
Which Of the following is limitation of financial analysis ?

1.Window-dressing

2. Basis of Valuation

3. Lack of Accuracy

4. All the above

Posted Date:-2022-10-26 09:59:38


Question:
Which of the following is not the limitations of financial analysis ?

1.Lack of Accuracy

2.Based on Historical facts

3. Basis of Valuation

4.Information of Profit and Loss

Posted Date:-2022-10-26 10:05:05


Question:
Which of the following non-operating expense?

1.Rent

2. Selling Expenses

3.Wages

4.Loss on Sale of Machinery

Posted Date:-2022-10-26 20:29:22


Question:
Which of the following statement correct ?

1. Retained Earnings = Total Income

2. Retained Earnings = Revenue-expenses

3.Retained Earnings = Gross Profit

4. None of the above

Posted Date:-2022-10-26 10:06:29


Question:
Which of the following transactions will improve the current ratio ?

1.Purchase of good for cash

2. Cash received from customers

3.Payment of creditors

4. Credit purchase of goods

Posted Date:-2022-10-27 00:41:43


Question:
Which one of the following ratios is most important in determining the long-term solvency of a company ?

1.Profitability Ratio

2.Debt-Equity Ratio

3.Stock Turnover Ratio

4.Current Ratio

Posted Date:-2022-10-26 20:23:49


Question:
While calculating cash flow from operating activities, which will be added ?

1. Increase in Stock

2. Increase in Creditors

3.Decrease in Bills Payable

4.Increase in Debtors

Posted Date:-2022-10-27 00:55:23


Question:
While calculating cash flow from operating netivities which will be deducted ?

1.Increase in Creditors

2. Increase in Debtors

3.Decrease in Debtors

4.Decrease in Prepaid Expenses

Posted Date:-2022-10-27 00:54:52


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