Matching Type MCQs of Accounting Ratios Class 12 with answers
Matching Type MCQs of Accounting Ratios (Ratio Analysis) Class 12 with answers for CBSE, ISC, CUET and State Board
Let’s Practice
Match the following:
| (i) Interest Coverage Ratio | (a) Liquidity Ratio |
| (ii) Proprietary Ratio | (b) Solvency Ratio |
| (iii) Working Capital Turnover Ratio | (c) Activity Ratio |
| (d) Profitability Ratio |
Choose the Correct Option:
(A) i-d, ii-b, iii-c
(B) i-b, ii-b, iii-c
(C) i-d, ii-a, iii-b
(D) i-d, ii-b, iii-a
Ans – (B)
If Current ratio is 1.6 : 1, What will be the effect of following:
| (i) Cash paid to trade payables | (a) Current Ratio will decline |
| (ii) Purchase of Stock-in-trade on credit | (b) Current Ratio will improve |
| (iii) B/R endorsed to a creditor | (c) Current Ratio will not change |
Options:
(a) i-b, ii-a, iii-b
(b) i-a, ii-a, iii-b
(c) i-b, ii-c, iii-b
(d) i-b, ii-a, iii-a
Ans – (a)
Match the following:
| (i) Proposed Dividend for Current year | (a) Contingent Liability |
| (ii) Uncalled Liability on partly paid shares | (b) Commitments |
| (c) Current Liabilities |
Choose the correct option:
(A) i-a, ii-b
(B) i-a, ii-c
(C) i-b, ii-c
(D) i-c, ii-b
Ans – (A)
If current ratio is 2.1 : 1.2, State the effect of the following:
| (i) Redeemed 8% Debentures of ₹ 5,00,000 at 5% premium | (a) Increase |
| (ii) Purchase of Loose Tools against cash | (b) Decrease |
| (iii) Accepted bill of exchange drawn by a creditor for ₹ 10,000 | (c) No change |
Options:
(a) i-b, ii-a, iii-c
(b) i-c, ii-b, iii-c
(c) i-b, ii-b, iii-c
(d) i-a, ii-b, iii-c
Ans – (d)
If Current Ratio is 1.2 : 1, What will be the effect of following:
| (i) Sale of Fixed Assets of ₹ 5,00,000 for ₹ 6,00,000 | (a) Current Ratio will decline |
| (ii) Sale of Fixed Assets of ₹ 5,00,000 for ₹ 4,00,000 | (b) Current Ratio will improve |
| (iii) Sale of goods costing ₹ 10,000 for ₹ 9,000 | (c) Current Ratio will not change |
(a) i-c, ii-b, iii-a
(b) i-b, ii-b, iii-a
(b) i-b, ii-c, iii-a
(b) i-b, ii-b, iii-c
Ans – (b)
Match the following:
| (i) Current Ratio is 1.8 : 1 | (a) Ideal |
| (ii) Quick Ratio is 1.2 : 1 | (b) Safe |
| (iii) Debt Equity Ratio is 2.5 : 1 | (c) Risky |
Options:-
(a) i-a, ii-b, iii-c
(b) i-c, ii-b, iii-c
(c) i-c, ii-a, iii-c
(d) i-c, ii-b, iii-a
Ans – (b)
If Quick Ratio is 1.4 : 1, What will be the effect of the following:
| (i) Received ₹ 15,000 from a debtor | (a) Increase |
| (ii) A debtor for ₹ 15,000 paid ₹ 12,000 in full settlement | (b) Decrease |
| (iii) Paid rent ₹ 20,000 in advance | (c) No change |
Options:-
(a) i-c, ii-b, iii-b
(b) i-a, ii-b, iii-b
(c) i-c, ii-a, iii-b
(d) i-c, ii-b, iii-a
Ans – (a)
Match the following:
| (i) Liquidity Ratio | (a) Total Assets to Debt Ratio |
| (ii) Solvency Ratio | (b) Quick Ratio |
| (iii) Profitability Ratio | (c) Operating Ratio |
Options:-
(a) i-a, ii-a, iii-c
(b) i-a, ii-b, iii-c
(c) i-b, ii-a, iii-c
(d) i-c, ii-a, iii-b
Ans – (c)
Match the following:
| (i) Shareholder’s Funds + Non Current Liabilities | (a) Inventory |
| (ii) Current Assets – Liquid Assets | (b) Current Liabilities |
| (iii) Total Debts – Long term Debts | (c) Capital Employed |
Choose the Correct Option:
(A) i-c, ii-b, iii-a
(B) i-b, ii-a, iii-b
(C) i-c, ii-a, iii-b
(D) i-a, ii-a, iii-b
Ans – (C)
Match the following:
| (i) Capital Reserve | (a) Issued Share Capital |
| (ii) Debenture Redemption Reserve | (b) Reserve and Surplus |
| (iii) Debit Balance of Statement of Profit & Loss | (c) Long term Borrowings |
| (iv) Bonds | (d) Subscribed Share Capital |
Choose the Correct Option:
(A) i-b, ii-a, iii-a, iv-d
(B) i-b, ii-b, iii-c, iv-b
(C) i-b, ii-d, iii-d, iv-a
(D) i-b, ii-b, iii-b, iv-c
Ans – (D)
Match the following:-
| (i) Earning capacity | (a) Solvency Ratio |
| (ii) Short term credibility | (b) Profitability Ratio |
| (iii) Total assets to Debt Ratio | (c) Liquidity Ratio |
Options:-
(a) i-b, ii-c, iii-a
(a) i-a, ii-c, iii-b
(a) i-c, ii-c, iii-a
(a) i-c, ii-b, iii-a
Ans – (a)
Match the following:
| (i) Debt Equity Ratio | (a) Times |
| (ii) Operating Ratio | (b) Percentages |
| (iii) Working Capital Turnover Ratio | (c) Proportionate |
Choose the correct option:
(A) i-a, ii-b, iii-a
(B) i-a, ii-c, iii-b
(C) i-c, ii-a, iii-b
(D) i-c, ii-b, iii-a
Ans – (D)
Match the following:
| (i) Proprietary Ratio | (a) Long term Debts/Shareholder’s Funds |
| (ii) Total Assets to Debt Ratio | (b) Shareholder’s Funds/Total Assets |
| (iii) Debt to Equity Ratio | (c) Total Assets/Long term Debts |
Choose the correct option:
(A) i-b, ii-c, iii-a
(B) i-b, ii-a, iii-c
(C) i-c, ii-b, iii-a
(D) i-a, ii-b, iii-c
Ans – (A)
Proprietery Ratio is 0.4 : 1. What will be the impact of the following:
| (i) Issue of equity shares against purchase of machinery | (a) No change |
| (ii) Issue of debentures against purchase of machinery | (b) Increase |
| (iii) Sale of a fixed asset costing ₹ 5,00,000 for ₹ 4,00,000 | (c) Decrease |
Options:-
(a) i-a, ii-c, iii-c
(b) i-b, ii-c, iii-a
(c) i-b, ii-c, iii-c
(d) i-b, ii-a, iii-c
Ans – (c)
Match the following:
| (i) Share Options Outstanding | (a) Non-Current Liabilities |
| (ii) Money Received against share warrants | (b) Current Liabilities |
| (iii) Premium on Redemption of Debentures | (c) Shareholder’s Funds |
| (iv) Provision for Tax |
Choose the correct option:
(A) i-b, ii-b, iii-a, iv-c
(B) i-c, ii-a, iii-b, iv-a
(C) i-c, ii-c, iii-a, iv-b
(D) i-a, ii-a, iii-b, iv-c
Ans – (C)
Match the following:
| (i) If average inventory is ₹ 90,000 and opening inventory is 1/2 of closing inventory, what will be the amount of opening inventory | (a) ₹ 45,000 |
| (ii) If average inventory is ₹ 90,000 and opening inventory is 1/3 of closing inventory, what will be the amount of opening inventory | (b) ₹ 36,000 |
| (iii) If average inventory is ₹ 90,000 and opening inventory is 1/4 of closing inventory, what will be the amount of opening inventory | (c) ₹ 60,000 |
Options:-
(a) i-a, ii-a, iii-b
(b) i-a, ii-b, iii-b
(c) i-c, ii-b, iii-a
(d) i-c, ii-a, iii-b
Ans – (d)
Match the following:
| (i) Current Liabilities + Working Capital | (a) Capital Employed |
| (ii) Total Assets – Current Liabilities | (b) Shareholder’s Funds |
| (iii) Share Capital + Reserve & Surplus | (c) Current Assets |
Choose the Correct Option:
(A) i-a, ii-b, iii-c
(B) i-c, ii-a, iii-b
(C) i-c, ii-b, iii-a
(D) i-a, ii-c, iii-b
Ans – (B)
Match the following:
| (i) 500 shares on which final call not received | (a) Authorised share capital |
| (ii) 500 shares on which final call has not been called | (b) Subscribed and fully paid |
| (iii) Shares offered to the public for subscription | (c) Subscribed but not fully paid |
| (d) Issued Share Capital |
Choose the Correct Option:
(A) i-c, ii-c, iii-d
(B) i-c, ii-b, iii-c
(C) i-d, ii-c, iii-b
(D) i-b, ii-c, iii-b
Ans – (A)
Match the following:
| (i) If cost of revenue from Operations is ₹ 12,00,000 and Gross Profit is 25% of revenue from operations, gross profit will be ₹ _____ | (a) ₹ 2,40,000 |
| (ii) If revenue from operations is ₹ 12,00,000 and Gross Profit is 25% of cost of revenue from operations, gross profit will be ₹ ___ | (b) ₹ 4,00,000 |
| (iii) If Gross Profit is ₹ 1,00,000 and G.P is 25% of revenue from operations, What will be revenue from operations | (c) ₹ 5,00,000 |
Options:-
(a) i-c, ii-a, iii-b
(b) i-b, ii-a, iii-b
(c) i-b, ii-a, iii-c
(d) i-a, ii-c, iii-b
Ans – (b)
If Debt-Equity Ratio is 1.8 : 1, what will be the effect of the following:
| (i) Sale of Fixed Asset (Book value ₹ 2,00,000) at a loss of ₹ 10,000 | (a) Increase |
| (ii) Redemption of Debentures for cash | (b) Decrease |
| (iii) Purchase of a fixed asset by taking a long-term loan | (c) No change |
Choose the Correct Option:
(A) i-b, ii-a, iii-c
(B) i-a, ii-c, iii-b
(C) i-a, ii-c, iii-a
(D) i-b, ii-b, iii-a
Ans – (C)
Match the following : Equity Share Capital ₹ 7,00,000; Reserves and Surplus ₹ 5,00,000; Total Debt ₹ 8,00,000; Short-term Debt ₹ 2,00,000
| (i) Debt Equity Ratio | (a) 3.33 : 1 |
| (ii) Proprietary Ratio | (b) 0.5 : 1 |
| (iii) Total Assets to Debt Ratio | (c) 0.6 : 1 |
Options:-
(a) i-a, ii-c, iii-a
(b) i-b, ii-a, iii-a
(c) i-b, ii-c, iii-a
(d) i-c, ii-c, iii-a
Ans – (c)
Match List I (Accounting Ratios) with List II (Formulae) and select the correct answer using the codes given below the lists:
| List – I | List – II |
| A. Current Ratio | 1. Credit Revenue from Operations/Average Trade Receivables |
| B. Return on Investment | Profit before Interest and Tax/Interest on Long-term Debt |
| C. Interest Coverage Ratio | Net Profit before Interest, Tax and Dividend/Capital Employed |
| D. Trade Receivables Turnover Ratio | Current Assets/Current Liabilities |
Options:-
(a) A-1, B-3, C-2, D-4
(b) A-4, B-2, C-3, D-1
(c) A-4, B-3, C-2, D-1
(d) A-3, B-2, C-1, D-4
Ans – (c)
Match the following:
| (i) Debentures redeemable after two years | (a) Long term provision |
| (ii) Debentures redeemable within one year | (b) Short term provision |
| (iii) Provision for Provident Fund | (c) Other current liability |
| (iv) Outstanding Salary | (d) Long term borrowings |
Choose the Correct Option:
(A) i-a, ii-b, iii-b, iv-c
(B) i-b, ii-b, iii-d, iv-c
(C) i-d, ii-c, iii-a, iv-c
(D) i-d, ii-c, iii-b, iv-b
Ans – (C)
Match List I with List II:
| List – I | List – II |
| (i) Current Ratio | (a) Solvency Ratio |
| (ii) Debt Equity Ratio | (b) Statement of Profit and Loss Ratio |
| (iii) Trade Receivables Turnover Ratio | (c) Balance Sheet Ratio |
| (iv) Gross Profit Ratio | (d) Composite Ratio |
Options:-
(a) i-a, ii-a, iii-d, iv-b
(b) i-c, ii-d, iii-d, iv-b
(c) i-c, ii-a, iii-d, iv-b
(d) i-a, ii-c, iii-d, iv-b
Ans – (c)
Match the following:
| (i) Proprietary Ratio | (a) Profitability Ratio |
| (ii) Return on Investment | (b) Liquidity Ratio |
| (iii) Acid Test Ratio | (C) Solvency Ratio |
| (iv) Interest Coverage Ratio | (D) Activity Ratio |
Choose the Correct Option:
(A) i-c, ii-b, iii-a, iv-c
(B) i-c, ii-a, iii-b, iv-c
(C) i-a, ii-a, iii-c, iv-a
(D) i-a, ii-a, iii-b, iv-a
Ans – (b)
Match the following:
| (i) Cheques in Hand | (a) Inventories |
| (ii) Work in Progress | (b) Trade Receivables |
| (iii) Stores and Spares | (c) Cash and Cash Equivalents |
Choose the Correct Option:
(A) i-c, ii-b, iii-a
(B) i-b, ii-a, iii-c
(C) i-c, ii-a, iii-b
(D) i-c, ii-a, iii-a
Ans – (D)
Match the following:
| (i) Selling Expenses + Administrative Expenses | (a) Operating Profit |
| (ii) Gross Profit – Operating Expenses | (b) Operating Expenses |
| (iii) Net Purchases + Carriage Inwards | (c) Cost of Revenue from Operations |
Choose the Correct Option:
(A) i-c, ii-a, iii-c
(B) i-b, ii-a, iii-b
(C) i-b, ii-a, iii-C
(D) i-b, ii-c, iii-b
Ans – (C)
Match the following:
| (i) Trade Marks | (a) Tangible Fixed Assets |
| (ii) Computer Software | (b) Intangible Fixed Assets |
| (iii) Work in Progress | (c) Current Assets |
Choose the Correct Option:
(A) i-b, ii-b, iii-a
(B) i-a, ii-b, iii-c
(C) i-a, ii-c, iii-a
(D) i-b, ii-b, iii-c
Ans – (D)
If Quick Ratio is 1.3 : 1, what will be the effect of the following:
| (i) Received ₹ 20,000 from a debtor | (a) Increase |
| (ii) A debtor for ₹ 20,000 paid ₹ 15,000 in full settlement | (b) Decrease |
| (iii) Paid rent ₹ 10,000 in advance | (c) No change |
Choose the Correct Option:
(A) i-c, ii-b, iii-b
(B) i-a, ii-b, iii-c
(C) i-c, ii-a, iii-b
(D) i-a, ii-b, iii-b
Ans – (A)
Match the following:
| (i) Accrued Interest on Calls in Advance | (a) Current Liabilities |
| (ii) Provision for Employee Benefits | (b) Cash and Cash Equivalents |
| (iii) Bank Overdraft | (c) Non-Current Liabilities |
| (iv) Loan repayable on demand |
Choose the Correct Option:
(A) i-a, ii-a, iii-a, iv-c
(B) i-a, ii-c, iii-a, iv-a
(C) i-c, ii-a, iii-c, iv-a
(D) i-a, ii-a, iii-a, iv-c
Ans – (B)
If Current ratio is 0.8 : 1, what will be the effect of the following:
| (i) Goods for ₹ 10,000 purchased on credit | (a) Increase |
| (ii) Bills payable discharged | (b) Decrease |
| (iii) B/R endorsed to creditor | (C) No Change |
Choose the Correct Option:-
(A) i-a, ii-b, iii-c
(B) i-a, ii-c, iii-b
(C) i-b, ii-a, iii-b
(D) i-a, ii-b, iii-b
Ans – (D)
Match the following:-
| (i) Public Deposits | (a) Long term Provision |
| (ii) Matured Debentures | (b) Long term Borrowings |
| (iii) Unclaimed Dividend | (c) Other Current Liabilities |
| (iv) Advances received from customers |
Choose the Correct Option:
(A) i-a, ii-b, iii-c, iv-c
(B) i-b, ii-b, iii-c, iv-c
(C) i-b, ii-c, iii-c, iv-c
(D) i-b, ii-c, iii-c, iv-c
Ans – (C)
