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NCERT Solutions for Class 12 Accountancy Chapter 5 - Accounting Ratios

Class 12 Accountancy NCERT Solutions Chapter 5 - Accounting Ratios

If you are looking for a reliable and quick understanding source for learning the tricky concepts of accountancy, then you need to clear the NCERT syllabus, firstly. After these, you may need extra questions for practice, various diverse logical questions, some high order thinking skills questions, and some basic questions. All the content you require is available at a single point in easily available offline mode too; the free PDFs. You can download free pdf for Class 12 Accountancy company accounts and analysis of financial statements right now. There are a complete series of other chapters and subjects available too. Download Class 12 Accountancy Part 2 Chapter 5 with a single click on the pdf link given below on this page for free.

NCERT Solutions for Class 12 Accountancy Chapter 5 Accounting Ratios part-1
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FAQ (Frequently Asked Questions)

1. What are the liquidity ratios?

The ratios which help to determine the company’s ability to pay back the current dues, are known as liquidity ratios. They calculate the short-term solvency of any business that is a simple conversation of assets into the delay. The time duration and loss are considered simultaneously during liquidity ratio calculation.

2. What do you mean by the Debt equity ratio?

The ratio declaring the relationship between the owner's fund and borrower’s fund, is known as Debt equity ratio. A lower ratio of it signifies the company's capability of meeting the long-term obligations.  Lower the ratio, the higher the security for lenders.

3. What is the importance of the current ratio?

The importance of the current ratio is observed in the following conditions. Access of current assets in comparison to current liabilities helps to determine the security to creditors and the essence of safety. The current ratio ensures to easily decide the company’s ability to meet its current liabilities perfectly on time.

4. Is Vedantu a reliable source for board studies?

The answer is undoubtedly yes. However, you can try on your own and can find even much more reliability, accuracy, question series, detailed explanations, even more than your expectations.

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