Chapter 8: Financial Statement Analysis May 22, 2024 Maven Leave a Comment Welcome to the Chapter 8: Financial Statement Analysis Quiz! This quiz is based on the book back questions. Name Email 1. Which of the following statements is not true? All the limitations of financial statements are applicable to financial statement analysis also. Financial statement analysis is only the means and not an end. Expert knowledge is not required in analysing the financial statements. Interpretation of the analysed data involves personal judgement. None 2. Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analysed? Cash flow statement Common size statement Comparative statement Trend analysis None 3. Which of the following statements is not true? Notes and schedules also form part of financial statements. The tools of financial statement analysis include common-size statement Trend analysis refers to the study of movement of figures for one year The common–size statements show the relationship of various items with some common base, expressed as percentage of the common base None 4. In a common-size balance sheet, if the percentage of non-current assets is 75, what would be the percentage of current assets? 175 125 25 100 None 5. Balance sheet provides information about the financial position of a business concern Over a period of time As on a particular date For a period of time For the accounting period None 6. The term Fund refers to Current liabilities Working capital Fixed assets Non-current assets None 7. The financial statements do not exhibit Non-monetary data Past data Short term data Long term data None 8. Which of the following is not a tool of financial statement analysis? Trend analysis Common size statement Comparative statement Standard costing None 9. Expenses for a business for the first year were Rs. 80,000. In the second year, it was increased to Rs. 88,000. What is the trend percentage in the second year? a) 10 % a) 110 % c) 90 % d) 11% None 10. A limited company's sales has increased from Rs. 1,25,000 to Rs. 1,50,000. How does this appear in comparative income statement? + 20 % + 120 % - 120 % - 20 % None Time's up Related Posts:Chapter 8: Bank Reconciliation StatementChapter 2. Consumption AnalysisChapter 3: Production AnalysisChapter 4: Cost and Revenue Analysis
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