Bihar Board 12th Entrepreneurship Objective Answers Chapter 12 Accounting Ratios

Bihar Board 12th Entrepreneurship Objective Questions and Answers

BSEB Bihar Board 12th Entrepreneurship Objective Answers Chapter 12 Accounting Ratios

Question 1.
Net working capital means:
(A) C. A.-C.L.
(B) C.A. + C.L.
(C) C.L. – C.A.
(D) None of the above
Answer:
(A) C. A.-C.L.

Question 2.
Ideal Current Ratio is:
(A) 2:1
(B) 1:2
(C) 3:2
(D) 4:l
Answer:
(A) 2:1

Question 3.
Which of the following is not an Operating Expense ?
(A) Advertising Expense
(B) Preliminary exp written off
(C) Wages
(D) Rent
Answer:
(B) Preliminary exp. written off

Question 4.
Stock Turnover Ratio comes under:
(A) Liquidity Ratio
(B) Profitability Ratio
(C) Activity Ratio
(D) Financial Position Ratio
Answer:
(C) Activity Ratio

Question 5.
Current Ratio is :
(A) Balance Sheet Ratio
(B) P/L Ratio
(C) Composit Ratio
(D) None of these
Answer:
(A) Balance Sheet Ratio

Question 6.
Ratio provide a ……… measure of a company’s performance and condition:
(A) Qualitative
(B) Relative
(C) Definite
(D) Goods
Answer:
(B) Relative

Question 7.
The primary concern of creditors when assessing the strength of a firm is the firm’s:
(A) Liquidity
(B) Share price
(C) Solvency
(D) Profitability
Answer:
(D) Profitability

Question 8.
The two basic measures of liquidity are:
(A) Stock & Debtors Turnover Ratio
(B) Current ratio & operating ratio
(C) Current ratio and liquid ratio
(D) Gross & Net Profit Ratio
Answer:
(C) Current ratio and liquid ratio

Question 9.
Analysis involves comparison of current to past performance and the evaluation of developing kind:
(A) Time Series
(B) Marginal
(C) Quantitative
(D) Cross-sectional
Answer:
(A) Time Series

Question 10.
Ratios are a measure of the speed with which various accounts are converted into sales or cash:
(A) Activity
(B) Debt
(C) Solvency
(D) Liquidity
Answer:
(A) Activity

Question 11.
The ………. is useful in evaluating credit and collection policies:
(A) Liquid Ratio
(B) Current Ratio
(C) Average payment period
(D) Average collection period
Answer:
(D) Average collection period

Question 12.
The……. ratios are primarily measures of return:
(A) Debt
(B) Profitability
(C) Activity
(D) Liquidity
Answer:
(C) Activity

Question 13.
The foilwing groups of ratios primarily measure risk:
(A) Activity, liquidity and profitablity
(B) Activity, debt and profitability
(C) Liquidity, activity, and common share
(D) Liquidity, activity and debt
Answer:
(B) Activity, debt and profitability