12th Class Accountancy Accounting Ratios Question Bank MCQs - Accounting Ratios

  • question_answer
    Fixed Assets Rs. 5,00,000; Current Assets Rs. 3,00,000; Equity Share Capital Rs. 4,00,000. Reserve Rs. 2,00,000; Long-term Debts Rs. 40,000. Proprietary Ratio will be:

    A) 75%                

    B) 80%

    C) 125%                                       

    D) 133%

    Correct Answer: A

    Solution :

    [a] 75%
    Hint: Proprietary Ratio =\[\frac{Shareholders Funds}{~~Total Assets}\]          
                                      =\[\frac{4,00,000+2,00,000}{~~5,00,000+3,00,000}\times 100\]=75%


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