Top 50 Financial Statement Analysis MCQs with Answers pdf

Attention all exam preppers! Are you feeling the pressure to ace your upcoming financial statement analysis test? Well, look no further, because we’ve got something special just for you. In this blog post, we present the ultimate treasure trove of knowledge: the Top 50 Financial Statement Analysis MCQs with Answers pdf.

So buckle up and get ready to dive into our comprehensive guide. Trust us, when it comes to exam success, there’s no better place than here!

Top 50 Financial Statement Analysis MCQs with Answers

1. Ratio of ‘net sales’ to’ net W.C’ is a:
a) W.C. turnover ratio
b) Profitability ratio
c) Liquidity ratio
d) Can’t say
Ans. (a)

2. Observing changes in the financial variable across the years in:
a) Vertical analysis.
b) Horizontal analysis.
c) Inter-firm comparison.
d) None
Ans. (b)

3. Ratio of net profit before interest and fax to sales in a:
a) Operating profit ratio
b) Capital gearing
c) Solvency ratio
d) Can’t say
Ans. (a)

4. The statistical yardstick that provides a measure of the relationship between two accounting figures in:
a) A operating current ratio
b) The accounting ratio
c) Input-output ratio
d) None
Ans. (b)

5. Debt equity ratio is a:-
a) Liquidity ratio
b) Solvency ratio
c) Profitability ratio
d) None
Ans. (b)

6. The turnover ratio helps management in:-
a) Managing resources
b) Managing a debit
c) Evaluating performance
Ans. (c)

7. Long term solvency is indicated by
a) Current ratio
b) Debit / easily ratio
c) Net profit ratio
Ans. (b)

8. The three most useful general purpose financial statements for management are:-
a) P & L A/C, B/S & statement of retained earnings.
b) P & L A/C, B/S & statement of changes in financial position.
c) P & L A/C, fund flow statement, stat of R.E
d) Stat. of R.E, B/S & fund flow statement
Ans. (b)

9. In the case of Ltd. Co. the term financial statement includes:-
a) P & L A/C & B/S
b) P & L A/C P & L appropriation A/C & B/S.
c) B/S
d) None
Ans. (b)

10. The term current assets do not include:-
a) Payments in advance
b) Bills receivable
c) Long-term deferred charges.
e) None
Ans. (c)

11. The following is a recorded fact:-
a) Mkt. Value of investment
b) Debtors
c) Replacement cost of M/C
d) None
Ans. (b)

12. The term fixed assets include:-
a) Stock in trade
b) Furniture
c) Payments in advance.
d) None
Ans. (b)

13. The two statements which are generally included in the definition of financial Statements are …………
Ans. P & L A/C balance sheet

14. Income statement ( P & L A/C ) …………. the revenues and costs incurred in the Process of earning revenues.
Ans. Matches

15. Balance sheet is a statement of ………… of a business at a specific movement of time.
Ans. Financial position

16. Assets & liabilities in a balance sheet (B/S) may be arranged either according to ……….. order or ………. Order
Ans. Liquidity & permanency.

17. Financial statements disclose only ………… facts.
Ans. Monetary.

18. P & L A/C is also called the …………
Ans. Income statement

19. Rearrangement of figures is necessary for ………… & …………
Ans. Analysis & interpretation.

20. Fund flow refers to changes in ……….. capital.
Ans. Working

21. Building sold on credit is ……….. of funds.
Ans. A source

22. Goods purchased on credit ……….. inflow of fund.
Ans. Does not result

23. The commission outstanding is ………… of funds.
Ans. An application

24. Any gain on the sale of non-current assets should be ……….. from the net profit for determining funds from operators.
Ans. Deducted

25. The difference between C.A. and C.L is known as ……….
Ans. Working capital