Find here the NCERT Book Multiple Choice Questions from Class 12 Accounting book with Answers Pdf free download as per CBSE new exam pattern. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Class 12 Accounting. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.
Q1. Interest Coverage Ratio is equal to
a) Net Profit before Interest and tax/Interest on long term loan
b) Net Profit before Interest and tax+Interest on long term loan
c) Net Profit before Interest and tax-Interest on long term loan
d) None of the options
a) Net Profit before Interest and tax/Interest on long term loan
Q2. Interest Coverage Ratio is deal only in
a) Return on loan as interest
b) Return on Working Capital
c) Return on loan as interest and Return on Working Capital
d) None of the options
a) Return on loan as interest
Q3. Management are interested in
a) Activity Ratios and Profitability Ratios
b) Activity Ratios
c) Profitability Ratios
d) None of the options
a) Activity Ratios and Profitability Ratios
Q4. Equity Investors are interested in
a) All of the options
b) knowing Earnings per Share
c) Return on Investment
d) Return on Equity
a) All of the options
Q5. Long term creditors are those creditors who provide funds for
a) More than one year
b) Only one year
c) More than one year and Only one year
d) None of the options
a) More than one year
Q6. Long term creditors are interested in
a) All of the options
b) Debt-Equity Ratio
c) Proprietary Ratio
d) Proprietary Ratio
a) All of the options
Q7. Current Ratio is :
(A) Liquid Assets/Current Assets
(B) Fixed Assets/Current Assets
(C) Current Assets/Current Liabilities
(D) Liquid Assets/Current Liabilities
(C) Current Assets/Current Liabilities
Q8. Liquid Assets do not include :
(A) Bills Receivable
(B) Debtors
(C) Inventory
(D) Bank Balance
(C) Inventory
Q9. Ideal Current Ratio is :
(A) 1 : 1
(B) 1 : 2
(C) 1 : 3
(D) 2 : 1
(D) 2 : 1
Q10. Working Capital is the :
(A) Cash and Bank Balance
(B) Capital borrowed from the Banks
(C) Difference between Current Assets and Current Liabilities
(D) Difference between Current Assets and Fixed Assets
(C) Difference between Current Assets and Current Liabilities
Q11. Current assets include only those assets which are expected to be realised within ……………………..
(A) 3 months
(B) 6 months
(C) 1 year
(D) 2 years
(D) 2 years
Q12. The ………………… of a business firm is measured by its ability to satisfy its short term obligations as they become due.
(A) Activity
(B) Liquidity
(C) Debt
(D) Profitability
(B) Liquidity
Q13. Ideal Quick Ratio is :
(A) 1 : 1
(B) 1 : 2
(C) 1 : 3
(D) 2 : 1
(A) 1 : 1
Q14. Which of the following will increase the current ratio where it is 2 : 1 ?
(a) Payment to creditors
(b) Conversions of receivables into cash
(c) Purchase of goods on credit
(d) Purchase of goods for cash
(a) Payment to creditors
Q15. Long term solvency ratio is judged by which of the following ratio?
(a) Debt equity ratio
(b) Total assets turnover ratio
(c) Liquidity ratios
(d) Operating ratio
(c) Liquidity ratios
Q16. Which of the following ratios provide solvency position of a business in the long run?
(a) Liquidity Ratios
(b) Solvency ratios
(c) Profitability ratios
(d) Turnover ratios
(b) Solvency ratios
Q17. In debt equity ratio, debt refers to
(a) Short term debts
(b) Total debts
(c) Shareholders’funds
(d) Long term borrowings and long term debts
(d) Long term borrowings and long term debts
Q18. Which of the following transactions will increase debt equity ratio which is 1 : 2?
(a) Issue of shares for cash
(b) Redemption of preference shares
(c) Redemption of debentures
(d) Conversion of debentures into shares
(b) Redemption of preference shares
Q19. Interest coverage is equal to
(a) Interest after interest but before tax / interest on debt
(b) Interest before interest and tax / interest on debt
(c) Interest after interest and debt / interest on debt
(d) Interest on debt / Interest before interest and tax
(b) Interest before interest and tax / interest on debt
Q20. Cost of revenue from operations is the difference between
(a) Revenue from operations + Gross Profit
(b) Revenue from operations – Gross Profit
(c) Revenue from operations – Net profit
(d) Revenue from operations + Net Profit
(b) Revenue from operations – Gross Profit
Accountancy MCQ Class 12 Part 1 and Accounts MCQ Class 12 Part 2
- Chapter 1: Accounting for Not for Profit Organisation Class 12 MCQ
- Chapter 2: Accounting for Partnership: Basic Concepts Class 12 MCQ
- Chapter 3: Reconstitution of Partnership Firm: Admission of a Partner Class 12 MCQ
- Chapter 4: Reconstitution of Partnership Firm: Retirement / Death of a Partner Class 12 MCQ
- Chapter 5: Dissolution of a Partnership Firm Class 12 MCQ
- Chapter 6: Accounting for Share Capital Class 12 MCQ
- Chapter 7: Issue and Redemption of Debentures Class 12 MCQ
- Chapter 8: Financial Statements of a Company Class 12 MCQ
- Chapter 9: Analysis of Financial Statements Class 12 MCQ
- Chapter 10: Accounting Ratios Class 12 MCQ
- Chapter 11: Cash Flow Statement Class 12 MCQ
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