Practice Accounting Ratios - 3.5.3 | Chapter 3: Financial Statement Analysis – ICSE Class 12 | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does the current ratio indicate?

💡 Hint: Think about what current assets vs. current liabilities means.

Question 2

Easy

Provide an example of a profitability ratio.

💡 Hint: Recall ratios that deal with profit and revenue.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the ideal Current Ratio?

  • 1:1
  • 2:1
  • 3:1

💡 Hint: Think about balance in financial health.

Question 2

True or False: Profitability ratios assess a company's ability to cover its short-term liabilities.

  • True
  • False

💡 Hint: Recall the purpose of profitability versus liquidity ratios.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Given a company with current assets of ₹500,000 and current liabilities of ₹200,000, calculate the current ratio and interpret the result in terms of financial stability.

💡 Hint: Use the formula and think about what the number indicates.

Question 2

A business shows a decline in its net profit ratio from 30% to 20% over two years. Discuss potential implications regarding its operational efficiency or market position.

💡 Hint: Consider external market factors and internal operational changes.

Challenge and get performance evaluation