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------------will… (Class 12 Accountancy SQP 2024-25, Q27b)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2024-25: question 27(b)

From the official CBSE sample question paper for 2024-25, 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

------------will result in increase in Liquid Ratio without affecting the Current Ratio.

  1. (A)Sale of Stock at cost price
  2. (B)Sale of stock at loss
  3. (C)Sale of stock at profit
  4. (D)Sale of investments at cost

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

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

Hint 1

Which current asset is left out of liquid assets?

Hint 2

At a profit or loss, total current assets would change.

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. Selling stock at cost swaps inventory for cash of the same amount: current assets and current liabilities do not change, so the current ratio is unchanged.

  2. Cash is a liquid asset and inventory is not, so the liquid ratio rises. Option (A).

    1 mark

Answer: (A) Sale of Stock at cost price

Where the marks are

  • Stock to cash at cost leaves current assets unchanged but raises liquid assets (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 2024-25: 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.