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Financial Analysis

Board » Bihar Board » Class 12th » English Medium » Commerce » Accountancy » L-13: Financial Analysis

Objective Questions (MCQs)

Question
Multiple Choice
VVI
Verified
ID- 4863
BSEB, 2018

1. Which of the following is a type of Financial Analysis on the basis of material used:

  • (A) Internal Analysis
  • (B) External Analysis
  • (C) Internal Audit
  • (D) Both (A) and (B)
Multiple Choice
Verified
ID- 4864

2. Which of the following statement is correct for Retained Earnings:

  • (A) Retained Earnings = Total Income
  • (B) Retained Earnings = Revenue-expenses
  • (C) Retained Earnings = Gross Profit
  • (D) None of the above
Multiple Choice
VVI
Verified
ID- 4865

3. When the financial statement of two or more organisations is analysed, it is called:

  • (A) Intra-firm Analysis
  • (B) Inter-firm Analysis
  • (C) Vertical Analysis
  • (D) None of these
Multiple Choice
Verified
ID- 4866

4. Which of the following is a limitation of financial analysis?

  • (A) Window-dressing
  • (B) Basis of Valuation
  • (C) Lack of Accuracy
  • (D) All of the above
Multiple Choice
Verified
ID- 4867

5. Which of the following is not the limitation of financial analysis?

  • (A) Lack of Accuracy
  • (B) Based on Historical facts
  • (C) Basis of Valuation
  • (D) Information of Profit and Loss
Multiple Choice
VVI
Verified
ID- 4868

6. On the basis of the process, which of the following is the type of financial analysis?

  • (A) Horizontal Analysis
  • (B) Vertical Analysis
  • (C) Ratio Analysis
  • (D) (A) and (B) both
Multiple Choice
Verified
ID- 4869

7. In which meeting of company directors report is presented?

  • (A) Directors' Meeting
  • (B) Annual General Meeting
  • (C) Managers' Meeting
  • (D) All of the above
Multiple Choice
VVI
Verified
ID- 4870

8. Statement of profit & loss is also called ............

  • (A) Balance Sheet
  • (B) Income Statement
  • (C) Operating Profit
  • (D) Investment
Multiple Choice
VVI
Verified
ID- 4871

9. The balance sheet provides information about the financial position of the enterprise:

  • (A) At a Point of Time
  • (B) Over a Period of Time
  • (C) For a Period of Time
  • (D) None of the above
Multiple Choice
VVI
Verified
ID- 4872

10. The financial statements of a business enterprise include:

  • (A) Balance Sheet
  • (B) Profit & Loss
  • (C) Cash Flow Statement
  • (D) All of the above
Multiple Choice
VVI
Verified
ID- 4873

11. For whom is the analysis of financial statements is not significant?

  • (A) Investor
  • (B) Government
  • (C) Embassador of India
  • (D) Company's Employee
Multiple Choice
Verified
ID- 4874

12. When the bad position of the business is tried to be depicted as good, it is known ...............

  • (A) Personal Bias
  • (B) Price Level Changes
  • (C) Window Dressing
  • (D) All of the above
Multiple Choice
VVI
Verified
ID- 4875

13. Which of the following shows the actual financial position of an enterprise?

  • (A) Fund Flow
  • (B) Balance Sheet
  • (C) P & L Statement
  • (D) Ratio Analysis
Multiple Choice
VVI
Verified
ID- 4876

14. Break-even Analysis shows:

  • (A) Relationship between cost and sales
  • (B) Relationship between production and purchase
  • (C) Relationship between cost and revenue
  • (D) None of these
Multiple Choice
Verified
ID- 4877

15. Which of the following is not a limitation of financial statement analysis?

  • (A) To measure the financial strength
  • (B) Affected by window-dressing
  • (C) Do not reflect changes in price level
  • (D) Lack Qualitative Analysis
Multiple Choice
VVI
Verified
ID- 4878
BSEB, 2018

16. Parties interested in financial statements are ..............

  • (A) Managers
  • (B) Financial Institutions
  • (C) Creditors
  • (D) All of these
Multiple Choice
Verified
ID- 4879

17. Which of the following is the purpose objective of financial analysis?

  • (A) To assess the current profitability of the firm
  • (B) To measure the solvency of the firm
  • (C) To assess the short-term and long-term liquidity position of the firm
  • (D) All of the above
Multiple Choice
VVI
Verified
ID- 4880

18. What is shown by the Balance Sheet?

  • (A) Accuracy of books of accounts
  • (B) Profit or loss of a specific period
  • (C) Financial position on a specific date
  • (D) None of the above
Multiple Choice
VVI
Verified
ID- 4881

19. What is shown by the income statement?

  • (A) Accuracy of books of accounts
  • (B) Profit or loss of certain period
  • (C) Balance of Cash Book
  • (D) None of these
Multiple Choice
VVI
Verified
ID- 4882

20. Financial analysis is significant because it:

  • (A) Ignores qualitative aspect
  • (B) Judges operational efficiency
  • (C) Suffers from the limitation of financial statements
  • (D) It is affected by personal ability and bias of the analysis
Multiple Choice
VVI
Verified
ID- 4883

21. Analysis of financial statements involves:

  • (A) Trading A/c
  • (B) Profit & Loss Statement
  • (C) Balance Sheet
  • (D) All of the above
Multiple Choice
VVI
Verified
ID- 4884

22. Financial Analysis is useful:

  • (A) For investors
  • (B) For shareholders
  • (C) For debentureholders
  • (D) All of the above
Multiple Choice
VVI
Verified
ID- 4885

23. Vertical Analysis is also known as:

  • (A) Fluctuation Analysis
  • (B) Static Analysis
  • (C) Structural Analysis
  • (D) Dynamic Analysis
Multiple Choice
VVI
Verified
ID- 4886

24. Which of the following statement is correct for Assets?

  • (A) Assets = Liabilities + Shareholders' Fund
  • (B) Assets = Total Fund
  • (C) Assets = Funds of outsiders
  • (D) None of the above