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