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

Question 3.
Which of the following is not an Operating Expense ?
(B) Preliminary exp written off
(C) Wages
(D) Rent
(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
(C) Activity Ratio Question 5.
Current Ratio is :
(A) Balance Sheet Ratio
(B) P/L Ratio
(C) Composit Ratio
(D) None of these
(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
(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
(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
(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
(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
(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
(D) Average collection period

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