Question 1

Which among the following is a sources of fund ?

Accepted Answer

A) sale proceeds of fixed assets 
B) sale proceeds of long term investments 
C) non operating incomes 
D) all of these 
A) sale proceeds of fixed assets 
B) sale proceeds of long term investments 
C) non operating incomes 
D) all of these D

Question 2

………….analysis is useful in comparing performance of several companies in the same group, or division or department of the same company.

Accepted Answer

A) vertical analysis 
B) horizontal analysis 
C) external analysis 
D) none of these 
A) vertical analysis 
B) horizontal analysis 
C) external analysis 
D) none of these A

Question 3

In case of a limited company, the term financial statements includes………

Accepted Answer

A) profit and loss account 
B) profit and loss account, profit and loss appropriation account and balance sheet 
C) balance sheet 
D) none 
A) profit and loss account 
B) profit and loss account, profit and loss appropriation account and balance sheet 
C) balance sheet 
D) none B

Question 4

Ratio of Net sales to Net working capital is a ………………………..

Accepted Answer

A) working capital turnover ratio 
B) profitability ratio 
C) liquidity ratio 
D) none of these 
A) working capital turnover ratio 
B) profitability ratio 
C) liquidity ratio 
D) none of these

Question 5

The statistical yardstick that provides a measure of relationship between two accounting figures is ……………………

Accepted Answer

A) current ratio 
B) the accounting ratio 
C) input output ratio 
D) none of these 
A) current ratio 
B) the accounting ratio 
C) input output ratio 
D) none of these

Question 6

The following is a recorded fact

Accepted Answer

A) market value of investment 
B) debtors 
C) replacement cost 
D) none 
A) market value of investment 
B) debtors 
C) replacement cost 
D) none

Question 7

Which among the following is an example for horizontal analysis ?

Accepted Answer

A) comparative balance sheet 
B) comparative income statement 
C) common size statements 
D) a & b 
A) comparative balance sheet 
B) comparative income statement 
C) common size statements 
D) a & b

Question 8

Given opening stock is Rs.20000, Direct expenses 10000, Closing stock 5000.Cost of goods sold is ……………………

Accepted Answer

A) 25000 
B) 35000 
C) 15000 
D) 20000 
A) 25000 
B) 35000 
C) 15000 
D) 20000

Question 9

Which one of the following is a source of fund ?

Accepted Answer

A) issue of shares in consideration of machinery purchased 
B) issue of bonus shares 
C) issue of right shares 
D) issue of shares for cash 
A) issue of shares in consideration of machinery purchased 
B) issue of bonus shares 
C) issue of right shares 
D) issue of shares for cash

Question 10

……………is only internal source of funds

Accepted Answer

A) fund from operations 
B) net profit 
C) both of these 
D) none of these 
A) fund from operations 
B) net profit 
C) both of these 
D) none of these

Question 11

……………….are the statements, in which figures reported are converted into percentages to some common base.

Accepted Answer

A) comparative statements 
B) common size statements 
C) both of these 
D) none 
A) comparative statements 
B) common size statements 
C) both of these 
D) none

Question 12

Ratio of net profit before interest and tax to sales is ……………….

Accepted Answer

A) operating profit ratio 
B) operating ratio 
C) capital gearing 
D) solvency ratio 
A) operating profit ratio 
B) operating ratio 
C) capital gearing 
D) solvency ratio

Question 13

……………..type of analysis is based on the data from year to year rather than on one date, and also termed as dynamic analysis.

Accepted Answer

A) internal analysis 
B) horizontal analysis 
C) external analysis 
D) none of these 
A) internal analysis 
B) horizontal analysis 
C) external analysis 
D) none of these

Question 14

………………. are prepared so as to provide time perspective to the consideration of various elements of financial position embodied in such statements.

Accepted Answer

A) comparative statements 
B) common size statements 
C) both of these 
D) none 
A) comparative statements 
B) common size statements 
C) both of these 
D) none

Question 15

The term fixed assets includes

Accepted Answer

A) stock in trade 
B) furniture 
C) payments in advance 
D) all of these 
A) stock in trade 
B) furniture 
C) payments in advance 
D) all of these

Question 16

Observing changes in financial analysis across the years is ……………

Accepted Answer

A) vertical analysis 
B) horizontal analysis 
C) inter firm comparison 
D) none of these 
A) vertical analysis 
B) horizontal analysis 
C) inter firm comparison 
D) none of these

Question 17

Which among the following is an application of fund ?

Accepted Answer

A) purchase of long term investments 
B) redemption of preference shares 
C) redemption of debentures 
D) all of these 
A) purchase of long term investments 
B) redemption of preference shares 
C) redemption of debentures 
D) all of these

Question 18

The term current assets does not include

Accepted Answer

A) payment in advance 
B) bills receivable 
C) long term deferred charges 
D) none of these 
A) payment in advance 
B) bills receivable 
C) long term deferred charges 
D) none of these

Question 19

An increase in current asset accompanied by the increase in current liabilities of the same amount will…………………

Accepted Answer

A) improve short term financial position 
B) not improve short term financial position 
C) improve long term financial position 
D) none of these 
A) improve short term financial position 
B) not improve short term financial position 
C) improve long term financial position 
D) none of these

Question 20

Income statement matches the …………… incurred in the accounting year

Accepted Answer

A) revenue and costs 
B) incomes and expenses 
C) both of these 
D) none of these 
A) revenue and costs 
B) incomes and expenses 
C) both of these 
D) none of these

Which among the following is a sources of fund ?

………….analysis is useful in comparing performance of several companies in the same group, or division or department of the same company.

In case of a limited company, the term financial statements includes………

Ratio of Net sales to Net working capital is a ………………………..

The statistical yardstick that provides a measure of relationship between two accounting figures is ……………………

The following is a recorded fact

Which among the following is an example for horizontal analysis ?

Given opening stock is Rs.20000, Direct expenses 10000, Closing stock 5000.Cost of goods sold is ……………………

Which one of the following is a source of fund ?

……………is only internal source of funds

……………….are the statements, in which figures reported are converted into percentages to some common base.

Ratio of net profit before interest and tax to sales is ……………….

……………..type of analysis is based on the data from year to year rather than on one date, and also termed as dynamic analysis.

………………. are prepared so as to provide time perspective to the consideration of various elements of financial position embodied in such statements.

The term fixed assets includes

Observing changes in financial analysis across the years is ……………

Which among the following is an application of fund ?

The term current assets does not include

An increase in current asset accompanied by the increase in current liabilities of the same amount will…………………

Income statement matches the …………… incurred in the accounting year

Accounting and Financial Analysis

Fund Flow and Working Capital

Costing and Cash Flow Analysis

Exploring Cost and Profit Analysis in Accounting

Cost Classification and Management Accounting

Filters

Exam 2: Financial Analysis and Statements

Which among the following is a sources of fund ?

………….analysis is useful in comparing performance of several companies in the same group, or division or department of the same company.

In case of a limited company, the term financial statements includes………

Ratio of Net sales to Net working capital is a ………………………..

The statistical yardstick that provides a measure of relationship between two accounting figures is ……………………

The following is a recorded fact

Which among the following is an example for horizontal analysis ?

Given opening stock is Rs.20000, Direct expenses 10000, Closing stock 5000.Cost of goods sold is ……………………

Which one of the following is a source of fund ?

……………is only internal source of funds

……………….are the statements, in which figures reported are converted into percentages to some common base.

Ratio of net profit before interest and tax to sales is ……………….

……………..type of analysis is based on the data from year to year rather than on one date, and also termed as dynamic analysis.

………………. are prepared so as to provide time perspective to the consideration of various elements of financial position embodied in such statements.

The term fixed assets includes

Observing changes in financial analysis across the years is ……………

Which among the following is an application of fund ?

The term current assets does not include

An increase in current asset accompanied by the increase in current liabilities of the same amount will…………………

Income statement matches the …………… incurred in the accounting year

Accounting and Financial Analysis

Fund Flow and Working Capital

Costing and Cash Flow Analysis

Exploring Cost and Profit Analysis in Accounting

Cost Classification and Management Accounting

Filters