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Accounting Ratios

CBSE · Class 12 · Accountancy

Complete topic list for Accounting Ratios in CBSE Class 12 Accountancy. Key concepts, sub-topics, and what to focus on for board exams.

30 questions22 flashcards5 concepts

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4 Topics · CBSE Class 12 Accountancy

Topics in Accounting Ratios

1

Meaning and Objectives of Accounting Ratios

  • A ratio expresses relationship between two accounting numbers from financial statements
  • Ratios can be expressed as fractions, proportions, percentages, or number of times
  • Ratios must be calculated using meaningfully correlated numbers
2

Advantages and Limitations of Ratio Analysis

  • Advantages: Simplifies complex figures, enables comparisons, identifies problem areas, helps in SWOT analysis
  • Limitations: Based on historical data, ignores price-level changes, limited by accounting data quality
  • Ratios don't provide solutions, only indicate problems
3

Liquidity Ratios

  • Measure short-term solvency and ability to meet current obligations
  • Based on relationship between current assets and current liabilities
  • Two main ratios: Current Ratio and Quick/Liquid Ratio
4

Solvency Ratios

  • Measure long-term financial stability and ability to meet long-term obligations
  • Focus on relationship between debt and equity
  • Important for long-term lenders and investors

Key Concepts

Mathematical relationships between two or moreMeasure shortAssess longMeasure efficiency in asset utilizationAnalyze earning capacity and returns

Frequently Asked Questions

What are the important topics in Accounting Ratios for CBSE Class 12 Accountancy?
Accounting Ratios covers several key topics that are frequently asked in CBSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Accounting Ratios — CBSE Class 12 Accountancy?
Start by understanding all key concepts. Practise previous year questions from this chapter. Revise formulas and definitions regularly. Use flashcards for quick revision before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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All 10 chapters — CBSE Class 12 Accountancy Syllabus

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