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Chapter 13 of 14
Formula Sheet

Accounting Ratios — Formula Sheet

Madhya Pradesh Board · Class 12 · Accountancy

9 formulas from Accounting Ratios (Madhya Pradesh Board Class 12 Accountancy) on one page, grouped by topic. Covers Meaning, Use, and Classification.

125 questions80 flashcards9 formulas & key relations5 concepts

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An infographic illustrating the role of accounting ratios as a tool for financial statement analysis, showing how they help assess profitability, liquidity, solvency, and efficiency for various stakeh
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9 Entries · 3 Sections

Formulas and Key Relations

Liquidity Ratios

Current Ratio = Current Assets : Current Liabilities or Current Assets/Current Liabilities

Quick Ratio = Quick Assets : Current Liabilities or Quick Assets/Current Liabilities

Solvency Ratios

Debt-Equity Ratio = Long-term Debts/Shareholders' Funds

Proprietary Ratio = Shareholders' Funds/Capital employed (or net assets)

Total Assets to Debt Ratio = Total assets/Long-term debts

Interest Coverage Ratio = Net Profit before Interest and Tax/Interest on long-term debts

Activity Ratios

Inventory Turnover Ratio = Cost of Revenue from Operations/Average Inventory

Average collection period = Number of days or months in a year/Trade Receivables Turnover Ratio

Average payment period = No. of days/month in a year/Trade Payables Turnover Ratio

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Frequently Asked Questions

What are the important topics in Accounting Ratios for Madhya Pradesh Board Class 12 Accountancy?
Key topics in Accounting Ratios include Meaning, Use, and Classification of Ratios, Liquidity Ratios, Solvency Ratios, Activity or Turnover Ratios. Study these first, then practise questions on each for the Madhya Pradesh Board Class 12 board exam.
How many formulas are in Accounting Ratios?
This sheet lists 9 formulas from Accounting Ratios, grouped by topic. Learn what each symbol stands for so you can apply the formula, not just recall it.
How should I revise Accounting Ratios for the Madhya Pradesh Board Class 12 board exam?
Learn the core ideas first, then work through the 125 practice questions on Accounting Ratios. Revise definitions regularly and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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Quizzes, flashcards, an AI doubt solver and a study plan for Madhya Pradesh Board Class 12 Accountancy. Free to start, no card needed.