10 YEARS QUESTIONS OF ACCOUNTING RATIO

PYQs Previous Years’ Questions

1 Mark Questions
1. Debt-equity ratio of Dhamaka Ltd is 3 : I. Which of the following will result in decrease in
this ratio?
CBSE SQP 2023-24
(a) Issue of debentures for cash of ₹ 2,00,000
(b) Issue of debentures of ₹ 3,00,000 to vendors from whom machinery' was purchased
(c) Goods purchased on credit of ₹ 1,00,000
(d) Issue of equity shares of ₹ 2,00,000
2. Which of the following equation is correct? CBSE 2023
(a) Cost of Revenue from Operations = Revenue from Operations + Gross Profit
(b) Cost of Revenue from Operations = Opening Inventory - Net Purchases + Direct
Expenses - Closing Inventory
(c) Cost of Revenue from Operations = Opening Inventory + Closing Inventory
(d) Cost of Revenue from Operations = Revenue from Operations - Gross Profit
3. From the following information, the ‘proprietor’s funds’are CBSE 2023

Current Assets ₹ 20,00,000

Non-current Assets ₹ 40,00,000

Long-term Borrowings ₹ 25,00,000

Proprietary Ratio 25%

(a) ₹ 10,00,000 (b) ₹ 14,00,000

(c) ₹ 24,00,000 (d) ₹ 15,00,000
4. If the operating ratio of Aman Ltd. is 60%, its operating profit ratio will be CBSE 2023
(a) 100% (b) 60% (c) 40% (d) 160%
5. Which of the following is not a solvency ratio?
CBSE 2023
(a) Return on Investment (b) Interest Coverage Ratio
(c) Proprietary Ratio (d) Total Assets to Debt Ratio
6. Which of the following is correct?
(i) Quick ratio can be more than current ratio.
(ii) High inventory turnover ratio is good for the organisation, except when goods are bought
in small lots or sold quickly at low margins to realise cash.
(iii) Sum of operating ratio and operating profit ratio is always 100%. CBSE SQP 2022-23
Codes
(a) All are correct (b) Only (i) and (iii) are correct
(c) Only (ii) and (iii) are correct .
(d) Only (i) and (ii) are correct
7. From the following calculate interest coverage ratio Net profit after tax ₹ 12,00,000; 10%
debentures ₹ 1,00,00,000; tax rate 40% CBSE SQP 2022-23
(a) 1.2 times (b) 3 times
(c) 2 times (d) 5 times
8. ……… ratios indicate the speed at which activities of the business are being performed.
CBSE Term I 2021
(a) Profitability
(b) Turnover
(c) Solvency
(d) Liquidity
9. From the following information, calculate inventory turnover ratio.
Revenue from operations = ₹ 2,00,000; Average inventory = ₹ 20,000; Gross profit ratio =
10%
CBSE Term I 2021
(a) 9 times (b) 10 times
(c) 12 times (d) 20 times
10. If operating ratio is 65%, operating profit ratio will be ………. . CBSE Term I 2021
(a) 20% (b) 25%
(c) 35% (d) 30%
11. 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. ? CBSE Term I 2021
(a) Debt will increase and equity will decrease.
(b) Debt will remain same and equity will increase.
(c) Debt will decrease and equity will increase.
(d) Debt will remain same and equity will decrease.
12. Assertion (A) A high debt-equity ratio is risky.
Reason (R) It may put the firm into difficulty to pay long-term debts. CBSE Term I 2021
Alternatives
(a) Assertion (A) is correct, but Reason (R) is wrong
(b) Both Assertion (A) and Reason (R) are correct
(c) Assertion (A) is wrong, but Reason (R) is correct
(d) Both Assertion (A) and Reason (R) are wrong
13. Assertion (A) Current ratio establishes relationship between current assets and current
liabilities.
Reason (R) The objective of this ratio is to measure the ability of the firm to meet its short-
term obligations as and when due without relying upon the realisation of inventories. CBSE
Term I 2021
Alternatives
(a) Assertion (A) is true, but Reason (R) is false
(b) Both Assertion (A) and Reason (R) are true, and Reason (R) is a correct explanation of
Assertion (A)
(c) Both Assertion (A) and Reason (R) are false
(d) Assertion (A) is false, but Reason (R) is true
14. Which of the following are included in traditional classification of ratios?
(i) Liquidity Ratio
(ii) Statement of Profit and Loss Ratio
(iii) Balance Sheet Ratio (iv) Profitability Ratio
(v) Composite Ratio
(vi) Solvency Ratio CBSE SQP Term I 2021-22
Codes
(a) (ii), (iii) and (v) (b) (i), (iv) and (vi)
(c) (i), (ii) and (vi) (d) All of these
15. The following groups of ratios primarily measure risk.
CBSE SQP Term I 2021-22
(a) Solvency, activity and profitability
(b) Liquidity, efficiency and solvency
(c) Liquidity, activity and profitability
(d) Liquidity, solvency and profitability
16. Which ratio indicates the proportion of assets financed out of shareholder’s funds?
CBSE SQP Term I 2021-22
(a) Debt-equity ratio (b) Fixed assets turnover ratio
(c) Proprietary ratio (d) Total assets to debt ratio
17. If total sales is ₹ 2,50,000 and credit sales is 25% of cash sales. The amount of credit
sales is
CBSE SQP Term I 2021 -22
(a) ₹ 50,000 (b) ₹ 2,50,000
(c) ₹ 16,000 (d) ₹ 3,00,000
18. 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?
CBSE SQP Term I 2021-22
(a) ₹ 1,20,000 (b) ₹ 1,60,000
(c) ₹ 2,00,000 (d) None of these
19. Assertion (A) Increasing the value of closing inventory increases profit.
Reason (R) Increasing the value ofclosing inventory reduces cost of goods sold.
Alternatives CBSE SQP Term I 2021 -22
(a) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct reason of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct reason
of Assertion (A)
(c) Only Reason (R) is correct
(d) Both Assertion (A) and Reason (R) are wrong
20. Current ratio of Adaar Ltd. is 2.5:1. Accountant wants to maintain it at 2:1. Following
options are available.
(i) He can repay bills payable
(ii) He can purchase goods on credit
(iii) He can take short-term loan CBSE SQP Term I 2021-22 Codes
(a) Only (i) is correct
(b) Only (ii) is correct
(c) Only (i) and (iii) are correct
(d) Only (ii) and (iii) are correct
21. What will be the current ratio of a company whose net working capital is ‘zero’? CBSE
SQP 2020-21
22. The ………. may indicate that the firm is experiencing stock outs and lost sales. CBSE
SQP 2020-21
(a) average payment period
(b) inventory turnover ratio
(d) average collection period
(d) quick ratio
23. Current ratio of Vidur Pvt. Ltd. is 3:2. Accountant wants to maintain it at 2:1. Following
options are available
(i) He can repay bills payable CBSE SQP 2020-21
(ii) He can purchase goods on credit
(iii) He can take short-term loan
Codes
(a) Only (i) is correct
(b) Only (ii) is correct
(c) Only (i) and (iii) are correct
(d) Only (ii) and (iii) are correct
24. If the operating ratio of a company is 75%, operating profit ratio will be ………. . CBSE
2020 (C)
25. Quick assets do not include CBSE 2020 (C)
(a) cash in hand (b) marketable securities
(c) prepaid expenses (d) trade receivables
26. The debt-equity ratio of a company is 2 : 1. State, giving reason, if issue of shares of ₹
6,00,000 will increase, decrease or not affect the ratio, CBSE 2020 (C)
27. ‘Purchase of goods ₹ 35,000 for cash will increase the operating ratio’. Is the statement
collect? Give reasons. CBSE 2020
28. What will be the effect on current ratio if a bills payable is discharged on maturity? CBSE
SQP 2019-20
29. Debt-equity ratio of a company is 1:2. Purchase of a fixed asset for ₹ 5,00,000 on long-
term deferred payment basis will increase, decrease or not change the ratio. CBSE SQP
2019-20
30. The two basic measures of operational efficiency of a company are CBSE SQP 2019-20
(a) Inventory Turnover Ratio and Working Capital Turnover Ratio
(b) Liquid Ratio and Operating Ratio
(c) Liquid Ratio and Current Ratio
(d) Gross Profit Margin and Net Profit Margin
31. A company had current assets ₹ 3,00,000 and current liabilities ₹ 1,40,000. Afterwards,
it purchased goods worth ₹ 20,000 on credit. Calculate the current ratio after the purchase of
goods. CBSE 2019
32. From the following information calculate interest coverage ratio. Net profit after interest
and tax ₹ 1,20,000; Rate of income tax 40% ; 15% debentures ₹ 1,00,000; 12% mortgage
loan ₹ 10,000. CBSE 2019
33. What is meant by ‘profitability ratios’?
CBSE All India 2016
34. The current ratio of Y Ltd is 2 : 1. State with reason, which of the following transactions
would
(a) increase (b) decrease or (c) not change the ratio
(i) Trade receivables included debtors of ₹ 40,000 which were received.
(ii) Company purchased furniture of ₹ 45,000. The vendor was paid by issue of equity
shares of ₹ 10 eac h at par. CBSE Delhi 2014
35. The quick ratio of Z Ltd is 1:1. State with reason which of the following transactions
would
(a) increase, (b) decrease or (c) not change the ratio
(i) Included in the trade payables was a bills payable of ₹ 3,000 which was met on maturity.
(ii) Debentures of ₹ 50,000 were converted into equity shares. CBSE Delhi 2014
36. State with reason whether repayment of long-term loan will result in increase, decrease
or no change of debt equity ratio. CBSE All India 2012
3/4 Marks Questions
37. (i) A company had a liquid ratio of 1.5 and current ratio of 2 and inventory turnover ratio 6
times. It had total current assets of ₹ 8,00,000. Find out annual sales if goods are sold at
25% profit on cost.
(ii) Calculate debt to capital employed ratio from the following information CBSE SQP 2023-
24

Shareholder funds ₹15,00,000

8% debenture ₹ 7,50,000
Current liabilities ₹ 2,50,000

Non-current assets₹17,50,000

Current assets ₹ 7,50,000

38. Calculate gross profit ratio from the following information

Inventory turnover ratio - 6 times
Average inventory - ₹ 4,00,000
Goods are sold at a profit of 25% on cost CBSE 2023
39. The current ratio of a company is 2 : 1. State giving reasons, which of the following
transactions would improve, reduce or not change the ratio. CBSE 2023 (i) Purchased
goods on credit ₹ 40,000
(ii) Sale of furniture of ₹ 8,000 at a loss of ₹ 2,000
(iii) Cash received from trade receivables ₹ 15,000
(iv) Issued equity shares ₹ 6,00,000
KEY IDEA
If current asset and current liability will increase with equal amount, it will reduce current ratio
and quick ratio.
40. ‘These ratios are calculated to measure the short-term solvency of the business’. Identify
the ratios and state the significance of two ratios included in the above category. CBSE 2023
41. ‘These ratios are calculated for measuring the efficiency of operations of business based
on effective utilisation of resources’.
(i) Identify the types of ratios being discussed above.
(ii) Explain any two ratios of the types of ratios identified in (i) above. CBSE 2023
42. Determine return on investment and net assets turnover ratio from the following
information
Profits after Tax were ₹ 6,00,000; Tax rate was 40%; 15% Debentures were of ₹ 20,00,000;
10% Bank Loan was ₹ 20,00,000; 12% Preference Share Capital ₹ 30,00,000; Equity Share
Capital ₹ 40,00,000; Reserves and Surplus were ₹ 10,00,000; Sales ₹ 3,75,00,000 and
Sales Return ₹ 15,00,000. CBSE SQP 2022-23
43. Debt to capital employed ratio is 0.3 : 1. State whether the following transactions, will
improve, decline or will have no change on the debt to capital employed ratio.
Also give reasons for the same.
(i) Sale of equipments costing ₹ 10,00,000 for ₹ 9,00,000.
(ii) Purchased goods on credit for ₹ 1,00,000 for a credit of 15 months, assuming operating
cycle is of 18 months.
(iii) Conversion of debentures into equity shares of ₹ 2,00,000.
(iv) Tax refund of ₹ 50,000 during the year.
CBSE SQP 2022-23
44. Calculate proprietaiy ratio, if total assets to debt ratio is 2:1. Debt is ₹ 5,00,000. Equity
share capital is 0.5 times of debt. Preference share capital is 25% of equity share capital.
Net profit before tax is
₹ 10,00,000 and rate of tax is 40%. CBSE SQP 2020-21
45. From the following information, calculate ‘Interest Coverage Ratio’.
Profit after Interest and Tax ₹ 7,50,000
Rate of Income Tax 25%
9 % Debentures ₹ 8,00,000
CBSE SQP 2020-21
46. (i) X Ltd. has a current ratio of 3 :1 and quick ratio of 2:1. The excess of current assets
over quick assets are ₹ 24,000. Calculate current assets and current liabilities.
(ii) From the following information, compute ‘Total Assets to Debt Ratio’ CBSE 2020(C)

Amt (₹)

Long-term Borrwings 3,00,000

Long-term Provisions 1,50,000

Current Liabilities 75,000

Non-current Assets 5,40,000

Current Assets 1,35,000

47. From the following information, calculate gross, profit ratio CBSE 2020 (C)

Revenue from Operations Amt (₹)

Cash 2,00,000

Credit 8,00,000

Purchases

Cash 40,000

Credit 3,60,000

Carriage Inwards 8,000

Salaries 42,000

Decrease in Inventory 1,22,000

Returns Outwards 20,000

Wages 20,000

48. Calculate the current ratio and debt-equity ratio from the following information CBSE
2020

Amt (₹)

Non-current Assets 16,00,000

Current Assets 4,00,000

Working Capital 2,00,000

Non-current Liabilities 12,00,000

49. From the following information, determine the opening inventory and the closing
inventory
Inventory Turnover Ratio =5 times
Revenue from Operations = ₹ 8,00,000
Gross Profit Ratio = 25%
Closing inventory was ₹ 20,000 more than the opening inventory. CBSE 2020
KEY IDEA
In the absence of information, gross profit will be considered as percentage of revenue from
operations (Net sales).
50. From the following details calculate interest coverage ratio CBSE SQP 2019-20

Net profit after tax ₹ 7,00,000

6% debentures of ₹ 20,00,000

Tax rate 30%

51. Quick ratio of a company is 1 : 1. State, with reason, whether the following transactions
will increase, decrease or not change the ratio
(i) Paid insurance premium in advance ₹ 10,000.
(ii) Purchased goods on credit ₹ 8,000.
(iii) Issued fully paid equity shares of ₹ 1,00,000.
(iv) Issued 9% debentures of ₹ 5,00,000 to the vendor for machinery purchased. CBSE
2019
52. From the following information of Shiva Ltd, calculate total assets to debt ratio CBSE
2019

Particulars Amt (₹)

Equity Share Capital 5,00,000

9% Preference Share Capital 4,00,000

Fixed Assets 12,00,000

Non-current Investments 1,50,000

Reserves and Surplus 2,40,000

Current Assets 1,90,000

Current Liabilities 1,00,000

53. (i) Calculate revenue from .operations of BN Ltd. From the following information

Current assets ₹ 8,00,000

Quick ratio is 1.5 : 1

Current ratio is 2:1

Inventory turnover ratio is 6 times

(ii) The operating ratio of a company is 60%. State whether ‘Purchase of goods costing ₹
20,000’ will increase, decrease or not change the operating ratio. CBSE 2019
54. Calculate amount of opening trade receivables and closing trade receivables from the
following figures

Trade Receivable Turnover Ratio 5 times

Cost of Revenue from Operations ₹ 8,00,300

Gross Profit Ratio 20%

Closing Trade Receivables were ₹ 40,000 more than in the beginning

Cash Sales being 1/4 times of Credit Sales

CBSE SQP 2018-19

55. From the following data, calculate current ratio and liquid ratio CBSE SQP 2018-19

Particulars Amt (₹)

Liquid Assats 75,000

Inventories (Includes Loose Tools of ₹ 20,000) 35,000

Prepaid Expenses 10,000

Working Capital 60,000

56. From the following information obtained from the books of Kundan Ltd, calculate the
inventory turnover ratio for the years 2015-16 and 2016-17.

Particulars 2015-16 (₹) 2016-17 (₹)

Inventory on 31st March 7,00,000 17,00,000

Revenue from Operations 50,00,000 75,00,000

(Gross profit is 25% on cost of revenue from operations) In the year 2015-16, inventory
increased by ₹ 2,00,000. CBSE 2018
57. Y Ltd’s profits after insterest and tax was ₹ 1,00,000. Its current assets were ₹ 4,00,000
current liabilities ₹ 2,00,000; fixed assets ₹ 6,00,000 and 10% long-term debt ₹ 4,00,000.
The rate of tax was 20%. Calculate ‘Return on Investment’ of Y Ltd. CBSE 2018 (C)
58. A company earn gross profit 25% on cost. For the year ended 31st March, 2017 its gross
profit was ₹ 5,00,000; equity share capital of the company was ₹ 10,00,000; reserves and
surplus ₹2,00,000; long-term loan ₹ 3,00,000 and non-current assets were ₹ 10,00,000.
Compute the ‘working capital turnover ratio’ of the company. CBSE 2018 (C)
59. The proprietary ratio of M Ltd is 0.80 : 1. State with reasons whether the following
transactions will increase, decrease or not change the proprietary ratio
(i) Obtained a loan from bank ₹ 2,00,000 payable after five years.
(ii) Purchased machinery for cash ₹ 75,000
(iii) Redeemed 5% redeemable preference shares ₹ 1,00,000.
(iv) Issued equity shares to the vendors of machinery purchased for ₹ 4,00,000. CBSE All
India 2017
60. The quick ratio of a company is 0.8 : 1.
State with reason whether the following transactions will increase, decrease or not change
the quick ratio
(i) Purchase of loose tools ₹ 2,000.
(ii) Insurance premium paid in advance ₹ 500.
(iii) Sale of goods on credit ₹ 3,000.
(iv) Honoured a bills payable ₹ 5,000 on maturity.
CBSE Delhi 2017
61. (i) What is meant by ‘activity ratios’?
(ii) From the following information calculate inventory turnover ratio, revenue from operations
₹ 16,00,000, average inventory ₹ 2,20,000, gross loss ratio 5%.
CBSE All India 2016
62. (i) What is meant by ‘solvency of business’?
(ii) From the following details obtained from the financial statements of Jeev Ltd. calculate
interest coverage ratio
Net profit after tax ₹ 1,20,000
12% long-term debt ₹ 20,00,000
Tax rate 40% CBSE Delhi 2016
63. (i) What is meant by ‘liquidity of business’?
(ii) From the following information calculate operating ratio
Revenue from operations ₹ 6,80,000, rate of gross profit on cost 25%, selling expenses ₹
1,44,000, administrative expenses ₹ 73,000. CBSE Delhi 2016
64. From the given information calculate the following
(i) Cost of revenue from operations
(ii) Opening and closing inventory
(iii) Quick assets
(iv) Current assets
Information Inventory turnover ratio 6 times, inventory at the end is ₹ 6,000 more than the
inventory in the beginning, revenue from operations (all credits) ₹ 2,40,000, Gross profit
25% on cost, current liabilities ₹ 80,000, quick ratio 0.80:1. CBSE Delhi 2016 (C)
65. The current ratio of a company is 2.1 : 1.2. State with reasons which of the following
transactions will increase, decrease or not change the ratio
(i) Redeemed 9% debentures of ₹ 1,00,000 at a premium of 10%.-
(ii) Received from debtors ₹ 17,000.
(iii) Issued ₹ 2,00,000 equity shares to the vendors of machinery.
(iv) Accepted bills of exchange drawn by the creditors ₹ 7,000. CBSE All India 2015
66. From the following information related to Naveen Ltd, calculate (i) Return on investment
(ii) Total assets to debt ratio.
Information Fixed assets ₹ 75,00,000; current assets ₹ 40,00,000; current liabilities ₹
27,00,000; 12% debentures ₹ 80,00,000 and net profit before interest, tax and dividend ₹
14,50,000. CBSE Delhi 2015
67. The current ratio of a company is 2.5 : 1.5. State with reasons which of the following
transactions will increase, decrease or not change the ratio
(i) Discounted a bills receivable of ₹ 10,000 from bank. Bank charged discount of ₹ 200.
(ii) A bill receivable ₹ 8,000 discounted with bank was dishonoured.
(iii) Cash deposited into bank ₹ 7,000.
(iv) Paid cash ₹ 5,000 to the creditors. CBSE Foreign 2015
68. From the following information, calculate total assets to debt ratio

Information Amt (₹)

Capital Employed 25,00,000

Investments 2,10,000

Land 8,50,000

Trade Receivables 2,75,000

Cash and Cash Equivalents 1,50,000

Equity Share Capital 14,30,000

8% Debentures 4,00,000

Capital Reserve 2,75,000

Surplus, i.e. Balance in Statement of Profit and Loss 1,50,000

CBSE All India 2015 (C)

69. From the following calculate the ‘gross profit ratio’ and ‘working capital turnover ratio’
CBSE Delhi 2014 (C)

Information Amt (₹)

Revenue from Operations 30,00,000

Cost of Revenue from Operations 20,00,000

Current Assets 6,00,000

Current Liabilities 2,00,000

Paid-up Share Capital 5,00,000

70. (i) From the following information, compute ‘debt equity ratio’

Items Amt (₹)

Long-term Borrowings 2,00,000

Long-term Provisions 1,00,000

Current Liabilities 50,000

Non-current Assets 3,60,000

Current Assets 90,000

(ii) The current ratio of X Ltd is 2 : 1. State with reason which of the following transaction
would increase, decrease or not change the ratio.
(a) Included in the trade payables was a bills payable of ₹ 9,000 which was met on maturity.
(b) Company issued 1,00,000 equity shares of ₹ 10 each to the vendors of machinery
purchased.
CBSE Delhi 2014
71. (i) The quick ratio of a company is 1.5 : 1. State with reason which of the following
transactions would increase, decrease or not change the ratio.
(a) Paid rent ₹ 3,000 in advance.
(b) Trade receivables included a debtor Shri Ashok who paid his entire amount due ₹ 9,700.
(ii) From the following information compute ‘proprietary ratio’ CBSE All India 2014

Information Amt (₹)

Long-term Borrowings 2,00,000

Long-term Pprovisions 1,00,000

Current Lliabilities 50,000

Non-current Assets 3,60,000

Current Assets 90,000

72. (i) Compute ‘debtors turnover ratio’ from the following information
Revenue from operations (Total sales) ₹ 5,20,000, cash revenue from operations 60% of the
credit revenue from operations, closing debtors ₹ 80,000, opening debtors are 3/4th of
closing debtors.
(ii) Current liabilities of a company are ₹ 1,60,000. Its liquid ratio is 1.5 : 1 and current ratio is
2.5 : 1. Calculate quick assets and current assets.
CBSE All India 2013
73. (i) Compute ‘working capital turnover ratio’ from the following information
Cash revenue from operations ₹ 1,30,000, credit revenue from operations ₹ 3,80,000,
returns from revenue from operations ₹ 10,000, liquid assets ₹ 1,40,000, current liabilities ₹
1,05,000 and inventory ₹ 90,000.
(ii) Calculate ‘debt equity ratio’ from the following information
Total assets ₹ 3,50,000, total debt ₹ 2,50,000 and current 1 iab i 1 i ties ₹ 80,000. CBSE
Delhi 2013
74. X Ltd has a current ratio of 3 : 1 and quick ratio of 2 :1. If the excess of current assets
over quick assets as represented by inventory is ₹ 40,000, calculate current assets and
current liabilities. CBSE All India 2012
75. From the following information, calculate any two of the following ratios
(i) Debt equity ratio
(ii) Working capital turnover ratio
(iii) Return on investment
Information Equity share capital ₹ 10,00,000, general reserve ₹ 1,00,000, balance of
statement of profit and loss after interest and tax ₹ 3,00,000, 12% debentures ₹ 4,00,000,
creditors ₹ 3,00,000, land and buildings ₹ 13,00,000, furniture ₹ 3,00,000. debtors
₹2,90,000, cash ₹ 1,10,000.
Revenue from operations, i.e. sales for the year ended 31st March, 2011 was ₹ 30,00,000.
Tax paid is 50%.
CBSE All India 2012; Modified

Case Based Question

1.

Year Amount 2020 (in ₹) 2019 (in ₹) 2018 (in ₹)

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

Gress Profit Ratio 12% 15% 18%

CBSE QB
(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