In this exclusive page, you will get chapter wise Ratio Analysis MCQs for various exams such Class 12, B.Com, BBA, MBA, CMA, CS and ICAI. In this post you will also get Accounting Ratios MCQs, Ratio Analysis MCQs for various competitive exams. You can also go through various links given below in the article for Chapter wise Management Accounting MCQs. Visit Our official website: https://www.dynamictutorialsandservices.org/ Ratio Analysis MCQs https://www.dynamictutorialsandservices.org/2020/11/ratio-analysis-mcqs-accounting-ra.html

1. Ratio Analysis MCQs
Dynamic Tutorials and Services

2. Ratio Analysis MCQs are Useful for the
following Exams:
1) Class 12 Exams (CBSE, AHSEC, State Boards)
2) BBA and MBA
3) CMA, ICAI and ICSI Exam
4) Dibrugarh University
5) Gauhati University
6) Mumbai and Pune University
7) M.Com Entrance Exams
8) All Competitive exams for Commerce stream
students

3. Prepared By: Kumar Nirmal Prasad
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Near Jivan Jyoti Hospital, Tinsukia College Road
Tinsukia (Assam – 786125)
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4. 1. Ratio analysis:
a) Is an arithmetical relationship between two accounting
variables?
b) Provide quantitative relationship between two variables.
c) It is one of the mean of financial analysis.
d) All of the above.
2. Which of the following is not a limitation of ratio analysis?
a) False and Misleading results.
b) It ignores qualitative factors.
c) It is affected by personal judgement of the analyst.
d) It cannot be used in forecasting.

5. 3. Which of the following are tools of management
accounting?
a) Financial Planning
b) Analysis of financial statements
c) Historical cost accounting
d) All of the above
Ans: d) All of the above
4. Management accounting is suitable for:
a) Small trading organisation
b) Large industrial and trading organisation
c) NPOs
d) Co-operative societies
Ans: b) large industrial and trading organisation

6. 3. Which of the following liabilities are taken into account
for the quick ratio?
a) Trade Creditors
b) Outstanding expenses
c) Bank overdraft
d) All of the above
4. Accounting ratios are divided into four main categories.
Which one of the following was not included in it?
a) Liquidity ratios
b) Solvency ratios
c) Activity ratios
d) Control ratios
e) Profitability ratios

7. 5. Activity ratios are also known as:
a) Performance ratios
b) Turnover ratios
c) Efficiency ratios
d) All of the above
6. Activity ratios include:
a) Stock turnover ratio
b) Trade receivables turnover ratio
c) Trade payables turnover ratio
d) All of the above

8. Fill in the blanks:
1. Operating profit ratio = 1 – operating ratio.
2. Capital employed = Total of fixed assets + Working
capital.
3. Net profit ratio is calculated by dividing net profit after
interest and tax by net sales.
4. The best ratio to evaluate short-term liquidity is liquid
ratio.
5. Solvency ratio is also known as leverage ratio.

9. State whether the following statements are true or false:
1. EPS is equal to net profit minus preference dividend divided by
the number of equity shares issued. True
2. Proprietary ratio = Shareholder’s fund/Total assets. True
3. Current ratio is also known as acid test ratio. False
4. Liquidity ratio indicates the ability of the company to meet its
short term obligations. True
5. Quick ratio is the relationship between quick assets and current
liabilities. True
6. Debt equity ratio is solvency ratio. True

10. For more than 100 MCQS relating to Accounting Ratios
Visit the following Link
https://www.dynamictutorialsandservices.org/2020/11/
ratio-analysis-mcqs-accounting-ra.html