Practice Long Answer Questions - 1.8.3 | 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

Define liquidity ratios and give one example.

💡 Hint: Think about ratios that indicate financial stability.

Question 2

Easy

What does the Debt-Equity Ratio indicate?

💡 Hint: Consider how a company finances its operations.

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 does the Current Ratio measure?

  • Short-term solvency
  • Long-term solvency
  • Profitability

💡 Hint: Consider what this ratio addresses.

Question 2

True or False: The Debt-Equity Ratio indicates how much equity shareholders have in the business.

  • True
  • False

💡 Hint: Think about capital structure.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Given the following details, calculate the Inventory Turnover Ratio:
- Cost of Goods Sold: ₹150,000
- Average Inventory: ₹30,000.

💡 Hint: Consider how many times the inventory was sold and replaced.

Question 2

A company has a Debt-Equity Ratio of 1.5. If the total equity is ₹2,00,000, how much total debt does the company have?

💡 Hint: Think about how to rearrange the ratio to find total debt.

Challenge and get performance evaluation