Practice Practice Questions (1.8) - Ratio Analysis - ICSE 12 Accounts
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Practice Questions

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Question 1 Easy

What is the formula for the Quick Ratio?

💡 Hint: Remember, Quick Assets exclude Inventory.

Question 2 Easy

Name any two types of liquidity ratios.

💡 Hint: Think of ratios focusing on short-term financial health.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does the Current Ratio measure?

Long-term financial strength
Short-term financial obligations
Overall profitability

💡 Hint: Consider what short-term obligations entail.

Question 2

True or False: The Net Profit Ratio indicates how much of sales is profit.

True
False

💡 Hint: Recall how net profit is calculated.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A company has the following financial figures: Current Assets: ₹250,000; Inventory: ₹50,000; Current Liabilities: ₹100,000. Calculate the Current Ratio and Quick Ratio.

💡 Hint: Remember to calculate Quick Ratio by excluding inventory.

Challenge 2 Hard

If a company has a net profit of ₹90,000 and total equity of ₹500,000, what is the Return on Equity (RoE)?

💡 Hint: Think about the percentage of net profit relative to shareholders' equity.

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