Practice Long Answer Questions (1.8.3) - Ratio Analysis - ICSE 12 Accounts
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Long Answer Questions

Practice - Long Answer Questions

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Practice Questions

Test your understanding with targeted questions

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.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

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.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

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.

Challenge 2 Hard

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.

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