Practice Chapter Summary - 1.7 | ICSE Class 12 Accounts – Chapter 5: Ratio Analysis | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the purpose of Ratio Analysis?

💡 Hint: Think about who uses this analysis.

Question 2

Easy

Name one type of liquidity ratio.

💡 Hint: Think about ratios that gauge short-term obligations.

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 the relationship between current assets and liabilities.

Question 2

True or False: Activity Ratios assess long-term financial obligations.

  • True
  • False

💡 Hint: What do these ratios typically focus on?

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has total assets of ₹1,500,000 and total liabilities of ₹1,000,000. Calculate the Debt-Equity Ratio and discuss its significance.

💡 Hint: What does the ratio of debt to equity suggest about financial leverage?

Question 2

If a business has an Operating Ratio of 80%, what does this mean about its operational efficiency?

💡 Hint: Consider how much revenue is left after covering operational costs.

Challenge and get performance evaluation