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Accountancy · 2026 · 1 mark
CBSE 2026 · Region 4 · Set 1 · Q30
Which of the following statements are correct ? I. A low current ratio endangers the business and puts it at risk of facing a situation, where it will not be able to pay its short-term debts on time. II. Trade payables turnover ratio expresses the relationship between net credit sales and average trade payables. III. Operating profit ratio plus Gross profit ratio = 100. IV. Inventory turnover ratio determines the number of times inventory is converted into revenue from operations during the accounting period under consideration. Options :ORRatios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are called :
OR
Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are called :Official answer
From CBSE’s own marking scheme for this paper.
(a) → (D)
(b) → (A)
Marking-scheme solution
(D)
I and IV
Q. (b) Ratios that are calculated for measuring the efficiency…
Ans. (A) Turnover ratios
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CBSE Class 12 Accountancy past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.