Karnataka State Board Class 12 Accountancy Chapter 9 MCQ 5 — Accounting Ratios

Multiple choice question (MCQ) for Karnataka State Board Class 12 Accountancy Chapter 9 (Accounting Ratios). Practice with answer and detailed explanation.

❓ Question

What is Accounting Ratios? Explain its significance with examples.

A) Accounting Ratios is directly proportional to the applied force
B) Accounting Ratios remains constant under all conditions
C) Accounting Ratios varies according to the fundamental principle ✓ Correct Answer
D) None of the above statements about Accounting Ratios are correct

📖 Explanation

The correct answer is C because Accounting Ratios follows the fundamental principle that governs its behavior under given conditions. Understanding this concept is crucial for solving related problems in this chapter.

📚 About This Chapter

This chapter covers Accounting Ratios in Class 12 Accountancy. Students learn fundamental concepts and applications essential for academic success.

This MCQ tests your understanding of Accounting Ratios. Practice more MCQs to strengthen your grasp of key concepts and prepare effectively for Karnataka State Board board exams.

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