Practice Proprietary Ratio - 1.4.2.3 | ICSE Class 12 Accounts – Chapter 5: Ratio Analysis | ICSE Class 12 Accounts
K12 Students

Academics

AI-Powered learning for Grades 8–12, aligned with major Indian and international curricula.

Academics

Grades

Grade 8 Grade 9 Grade 10 Grade 11 Grade 12

Curriculum

CBSE ICSE IB
Professionals

Professional Courses

Industry-relevant training in Business, Technology, and Design to help professionals and graduates upskill for real-world careers.

Professional Courses
Games

Interactive Games

Fun, engaging games to boost memory, math fluency, typing speed, and English skills—perfect for learners of all ages.

games
Typing
Memory
Math
English Adventures
Knowledge

1.4.2.3 - Proprietary Ratio

Enroll to start learning

You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take mock test.

Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the formula for the Proprietary Ratio?

💡 Hint: Think about what the ratio is measuring.

Question 2

Easy

How does a higher Proprietary Ratio affect financial risk?

💡 Hint: Consider what higher equity funding implies.

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 a higher Proprietary Ratio indicate?

  • Lower financial risk
  • Higher financial risk
  • No impact

💡 Hint: Think about the implications of financing through shareholders' equity.

Question 2

True or False: A Proprietary Ratio of 1 means all assets are financed by equity.

  • True
  • False

💡 Hint: Consider the meaning of a total reliance on equity financing.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

You have two companies: Company A with Shareholders' Funds of ₹4,00,000 and Total Assets of ₹10,00,000, and Company B with Shareholders' Funds of ₹8,00,000 and Total Assets of ₹9,00,000. Compare their Proprietary Ratios and assess which company might have lower financial risk.

💡 Hint: Compare the ratios directly.

Question 2

A startup reports Shareholders' Funds of ₹1,00,000 and Total Assets of ₹2,50,000. What is the Proprietary Ratio, and what does this suggest about the startup's reliance on debt?

💡 Hint: Analyze the result in the context of startup financing.

Challenge and get performance evaluation