Table of Contents

# ISC ACCOUNTS Ratio Analysis MCQs with Solved Answers

**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 **

1. Answer- (a) 20%

*6,00,000 ×100/30,00,000*

2. Answer- (b) 20%

*10,00,000 ×100/50,00,000*

3. Answer- (b) 84%

*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*

4. Answer- (b) 30%

5. Answer- (a) 16%

## Management Accounting MCQs with solved answers (Ratio analysis)

## 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

**Answer – Question Number 6 To 10**

6. Answer- (a) ₹60,000

7. Answer- (a) ₹15,000

8. Answer- (b) ₹37,500

9. Answer- (a) 12 Times

10. Answer- (a) 8 Times

## Management Accounting MCQs with solved answers (Ratio analysis)

## 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**

11. Answer- (a) 25%

12. Answer- (a) 2:1

13. Answer- (a) 15%

14. Answer- (b) 85%

15. Answer- (b) ₹28,000 and ₹ 32,000

## ISC Economics 12 Demand MCQs With Solved Answer

## 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.

(b) Insurance premium of ₹ 3,000 paid in advance.

(c) Plant and Machinery purchased for ₹ 9,000.

(d) Bills Payable of ₹ 2,000 honoured on the due date.

**Answer – Question Number 16 To 20**

16. Answer- (a) 70%

17. Answer- (a) 2:1

18. Answer- (c) 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 𝑎𝑛𝑑 𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑/𝑁𝑜. 𝑜𝑓 𝐸𝑞𝑢𝑖𝑡𝑦 𝑆ℎ𝑎𝑟𝑒𝑠

19. Answer- (d) ₹5.50

20. Answer- (d) Bills Payable of ₹ 2,000 honoured on the due date.

## ISC ACCOUNTS Ratio Analysis MCQs with Solved Answers

## Watch Video: ISC Accounts Fundamental of Partnership MCQs with solved answers