Accounting Ratios: Class 12 Accountancy (MP Board) important questions and practice
Accounting Ratios is chapter 9 of 10 in MP Board Class 12 Accountancy. Below are the topics the paper draws from, the question types that come up again and again, and a free practice test on this chapter alone.
Topics in this chapter
- Meaning, objectives and limitations of ratio analysis
- Liquidity ratios: current ratio and quick ratio
- Solvency ratios: debt-equity, total assets to debt, proprietary, interest coverage
- Activity ratios: inventory turnover, trade receivables and payables turnover, working capital turnover
- Profitability ratios: gross profit, operating, operating profit, net profit, return on investment
What examiners usually ask
- From the given Balance Sheet calculate the current ratio and quick ratio
- Calculate the debt-equity ratio when shareholders' funds are Rs 10,00,000 and long-term borrowings are Rs 6,00,000
- The inventory turnover ratio of a company is 8 times; revenue from operations is Rs 20,00,000 and gross profit is 25 percent on cost; calculate the opening and closing inventory if closing is Rs 20,000 more than opening
Exam tip
Write the formula before substituting values, because formula marks are awarded separately, and remember that quick assets exclude inventory and prepaid expenses while current liabilities include short-term provisions.
Accounting Ratios on other boards and exams
Frequently asked questions
What are the important questions from Accounting Ratios for MP Board Class 12?
The question types listed above repeat most often in MP Board Class 12 Accountancy papers for this chapter. Practise them with the chapter test and then attempt them inside a full previous-year paper under time.
Is Accounting Ratios in the MP Board Class 12 Accountancy syllabus?
Yes. Accounting Ratios is part of the current MP Board Class 12 Accountancy syllabus, as listed on this site from the prescribed textbook.
Can I practise Accounting Ratios MCQs in Hindi?
Yes. The chapter test and explanations are available in Hindi and English, with an AI doubt solver for any question.