Practice Very Short Answer Questions - 1.8.1 | 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 Current Ratio?

💡 Hint: Think about what is needed to cover short-term debts.

Question 2

Easy

Name one profitability ratio.

💡 Hint: What measures profitability in relation to sales?

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?

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

💡 Hint: Consider the scope of 'Current' in finance.

Question 2

True or False: Ratio Analysis can fully assess a company’s performance.

  • True
  • False

💡 Hint: Think about what kind of data ratio analysis overlooks.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Given the following financial details, calculate the Current Ratio and assess the liquidity position: Current Assets: ₹500,000, Current Liabilities: ₹200,000.

💡 Hint: Remember, a ratio over 2 indicates healthy liquidity.

Question 2

A company reports Gross Profit of ₹120,000 and Net Sales of ₹600,000. Calculate the Gross Profit Ratio and explain its significance.

💡 Hint: Think about how much of sales is retained after accounting for the cost of goods sold.

Challenge and get performance evaluation