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Ratios calculated to… (Class 12 Accountancy 2026, Q27b)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/1/1 · 1 mark · MCQ

CBSE Class 12 Accountancy 2026: question 27(b)

Set in the CBSE Class 12 board exam of 2026, paper 67/1/1, 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

Ratios calculated to measure the ability of the business to pay the amount due to stakeholders as and when it is due are known as :

  1. (A)Solvency ratios
  2. (B)Liquidity ratios
  3. (C)Activity ratios
  4. (D)Profitability ratios

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/1/1.

Hints

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

Hint 1

"As and when due" points to short-term payment capacity.

Hint 2

Solvency is about the long term.

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. The ability to pay amounts due to stakeholders as and when they fall due is liquidity.

  2. Ratios that measure it (current ratio, quick ratio) are liquidity ratios. Option (B).

    1 mark

Answer: (B) Liquidity ratios

Where the marks are

  • Liquidity ratios (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Accounting Ratios, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 67/1/1: 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.