# ISC ACCOUNTS Ratio Analysis MCQs with Solved Answers

## ISC ACCOUNTS Ratio Analysis MCQs with Solved Answers (Question 1 to 5)

1. Net revenue from Operation: ₹30,00,000
Cost of Revenue from Operation: ₹24,00,000, Wages: ₹40,000, Salary: ₹40,000, Factory Expenses: ₹60,000, Office Management Expenses: ₹1,00,000. Gross profit Ratio will be:
(a) 20%
(b) 16.6%
(c) 10%
(d) None of these

2. Net revenue from Operation: ₹50,00,000, Cost of Revenue from Operations: ₹35,00,000, Salary: ₹1,00,000, Office Expenses: ₹1,50,000, Administrative Expenses: ₹2,50,000 Wages ₹1,00,000. Net Profit Ratio will be:
(a) 18%
(b) 20%
(c) 16%
(d) None of these

3. Sales: ₹4,00,000, Purchase: ₹2,20,000, Opening Inventory: ₹80,000, Closing Inventory: ₹1,10,000, Carriage: ₹40,000, Labour: ₹30,000, Manufacturing Expenses: ₹20,000, Operating Expenses: ₹56,000. Operating Ratio will be:
(a) 70%
(b) 84%
(c) 16%
(d) None of these

4. Sales: ₹4,00,000, Purchase: ₹2,20,000, Opening Inventory: ₹90,000, Closing Inventory: ₹1,20,000, Carriage: ₹10,000, Labour: ₹30,000, Manufacturing Expenses: ₹50,000, Operating Expenses: ₹66,000. Gross Profit Ratio will be:
(a) 16%
(b) 30%
(c) 32%
(d) 10%

5. Sales: ₹4,00,000, Purchase: ₹2,20,000, Opening Inventory: ₹90,000, Closing Inventory: ₹1,20,000, Carriage: ₹50,000, Labour: ₹20,000, Manufacturing Expenses: ₹20,000, Operating Expenses: ₹56,000. Operating Profit Ratio will be:
(a) 16%
(b) 32%
(c) 14%
(d) 12%

## Answer – Question Number 1 To 5

6,00,000 ×100/30,00,000

10,00,000 ×100/50,00,000

Cost of Revenue from Operations= 80,000+2,20,000+90,000-1,10,000= 2,80,000

(2,80,000+56,000) ×100/4,00,000

## ISC ACCOUNTS Ratio Analysis MCQs with Solved Answers (Question 6 to 10)

6. Current Ratio 4:1 and the Quick Ratio is 2:5:1. Inventories: ₹22,500. Amount of Current Asset will be:
(a) ₹60,000
(b) ₹82,500
(c) ₹90,000
(d) None of These

7. Amount of Total Current Liabilities will be (take values from Ques.6):
(a) ₹15,000
(b) ₹30,000
(c) ₹22,500
(d) None of these

8. Amount of Liquid Asset will be (take values from Ques.6):
(a) ₹82,500
(b) ₹37,500
(c) ₹60,000
(d) None of These

9. Net profit after Income Tax:  ₹39,600. Rate of Tax: 40%, ₹50,000, 6% First Mortgage debenture, ₹1,00,000, 7 % Second mortgage Debenture. Interest Coverage Ratio will be:
(a) 7.6 Times
(b)  6.54 Times
(c) 8.54 Times
(d) None of These

10. Opening Debtors: ₹48,000, Closing Debtors: ₹52,000, Credit revenue from Operations: ₹4,00,000, Cash revenue from Operations: ₹2,00,000, Total Revenue from Operations: ₹6,00,000.Trade Receivable turnover ratio will be:
(a) 8 Times
(b) 4 times
(c) 12 times
(d) None of These

## ISC ACCOUNTS Ratio Analysis MCQs with Solved Answers (Question 11 to 15)

11. Current Assets: ₹2,00,000, Current Liabilities: ₹1,00,000. Total Revenue from operation: ₹2,00,000. Cost of Revenue from Operation: ₹1,50,000, operation Expenses: ₹20,000, Inventory Turnover Ratio: 5 Times. If closing stock is more by ₹4000 than operating stock. Gross Profit will be:
(a) 25%
(b) 15%
(c) 30%
(d) None of These

12. Current Assets: ₹2,00,000, Current Liabilities: ₹1,00,000. Total Revenue from operation: ₹2,00,000. Cost of Revenue from Operation: ₹1,50,000, operation Expenses: ₹20,000, Inventory Turnover Ratio: 5 Times. If closing stock is more by ₹4000 than operating stock. The Current Ratio will be:
(a) 2:1
(b) 2:5:1
(c) 3:5:1
(d) None of These

13. Current Assets: ₹2,00,000, Current Liabilities: ₹1,00,000. Total Revenue from operation: ₹2,00,000. Cost of Revenue from Operation: ₹1,50,000, operation Expenses: ₹20,000, Inventory Turnover Ratio: 5 Times. If closing stock is more by ₹4000 than operating stock. Operating Profit  Ratio will be:
(a) 15%
(b) 25%
(c) 12%
(d) 18%

14. Current Assets: ₹2,00,000, Current Liabilities: ₹1,00,000. Total Revenue from operation: ₹2,00,000. Cost of Revenue from Operation: ₹1,50,000, operation Expenses: ₹20,000, Inventory Turnover Ratio: 5 Times. If closing stock is more by ₹4000 than operating stock. The operating Ratio will be:
(a) 80%
(b) 85%
(c) 75%
(d) None of These

15. Total Revenue from operation: ₹2,00,000. Cost of Revenue from Operation: ₹1,50,000, operation Expenses: ₹20,000, Inventory Turnover Ratio: 5 Times. If closing stock is more by ₹4000 than operating stock. Opening Stock and Closing Stock  will be:
(a) ₹25,000 and ₹29,000
(b) ₹28,000 and ₹ 32,000
(c) ₹32,000 and ₹ 36,000
(d) ₹35,000 and ₹ 29,000

## Answer – Question Number 11 To 15

15. Answer- (b) ₹28,000 and ₹ 32,000

## ISC ACCOUNTS Ratio Analysis MCQs with Solved Answers (Question 16 to 20)

16. Equity share capital ₹2,00,000
Preference share capital ₹ 50,000
Reserves and surpluses ₹25,000
Debentures ₹60,000
Creditors ₹15,000
Fixed assets ₹2,25,000
Current Assets ₹50,000
Investment ₹75,000 . proprietary ratio will be:
(a) 70%
(b) 75%
(c) 80%
(d) 100%

17. Total Assets ₹1,25,000. Total debts ₹1,00,000 current liabilities ₹50,000. Debt Equity ratio will be:

(a) 2:1
(b) 1:1
(c) 3:2
(d) None of these

18. The correct formula for computing Earning per share is:
(a) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥/𝑁𝑜. 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒𝑠
(b) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 𝑎𝑛𝑑 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑/𝑁𝑜. 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒𝑠
(c) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 𝑎𝑛𝑑 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑/𝑁𝑜. 𝑜𝑓 𝐸𝑞𝑢𝑖𝑡𝑦 𝑆ℎ𝑎𝑟𝑒𝑠
(d) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 𝑎𝑛𝑑 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑/𝑁𝑜. 𝑜𝑓 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑆ℎ𝑎𝑟𝑒

19. Equity share capital ₹2,00,000(10 each)
20% Preference share capital ₹ 50,000
10%Debentures ₹60,000
Rate of Tax 50 %
Net profit before Interest Tax and Preference Share Dividend ₹2,46,000 Earning per share will be:
(a) ₹5.55
(b) ₹5.56
(c) ₹5.54
(d) ₹5.50

20 The Current Ratio of a company is 2·8:1 and its Quick Ratio is 2·6:1.
From the following transactions, pick out the transaction which involves an increase in both the Current Ratio and Quick Ratio:
(a) Goods worth ₹ 10,000 sold at a loss of ₹ 2,000.
(c) Plant and Machinery purchased for ₹ 9,000.
(d) Bills Payable of ₹ 2,000 honoured on the due date.