Practice Types of Ratios - 1.4 | 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 formula for the current ratio?

💡 Hint: Remember to include only current assets and liabilities.

Question 2

Easy

What does the quick ratio indicate?

💡 Hint: Think about what quick assets are.

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 liquidity ratio assess?

  • Long-term obligations
  • Short-term obligations
  • Profitability

💡 Hint: Focus on the short-term aspect of financial stability.

Question 2

True or False: A debt-equity ratio higher than 1 indicates a company is primarily financed by debt.

  • True
  • False

💡 Hint: Think about the implications of high debt financing.

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, Inventory of ₹100,000, Current Liabilities of ₹250,000, calculate both the Current Ratio and Quick Ratio.

💡 Hint: Remember to extract the quick assets from total current assets for quick ratio.

Question 2

A company has long-term debt of ₹600,000 and total equity of ₹400,000. Calculate the debt-equity ratio and comment on its financial health.

💡 Hint: Think about what a ratio greater than 1 indicates regarding leverage.

Challenge and get performance evaluation