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............ is… (Class 12 Accountancy SQP 2023-24, Q27b)

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AccountancyCBSE Class 12 · Sample paper, session 2023-24 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2023-24: question 27(b)

From the official CBSE sample question paper for 2023-24, section B-I, question 27(b), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q27(b) · 1 mark · MCQAccounting Ratios

............ is included in current assets while preparing balance sheet as per revised Schedule III but excluded from current assets while calculating Current Ratio

  1. (A)Debtors.
  2. (B)Cash and Cash Equivalent.
  3. (C)Loose tools and Stores and spares.
  4. (D)Prepaid Expense.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Which item is part of inventories but is not meant for sale?

Hint 2

Current ratio counts assets that will become cash in the operating cycle.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Schedule III shows loose tools and stores and spares under Inventories, a current asset.

  2. For the current ratio they are left out of current assets, as they are not meant to be turned into cash. Option (C).

    1 mark

Answer: (C) Loose tools and Stores and spares.

Where the marks are

  • Loose tools and stores and spares excluded for current ratio (1 mark)

Revise the chapter

  • Chapter: Accounting Ratios (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Accounting Ratios, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.