Top 50 Financial Statement Analysis MCQs with Answers pdf 2024

26. Depreciation is sometimes treated as ………… funds.
Ans. A source

27. An increase in an asset due to purchase is
a) Source of funds
b) User of funds
c) None
Ans. b) User of funds

28. Net profit earned plus non-W.C. expenses is equal to
a) Funk provided by operations
b) Use of funds
c) Sinking fund
Ans. a) Funk provided by operations

29. Tax paid is …………
a) Application of funds
b) Source of funds
c) No flow of funds
Ans. a) Application of funds

30. Stock at the end results in the
a) Application of fund
b) Source of fund
c) No flow fund
Ans. b) Source of fund

31. An increase in the share premium A/C is
a) An application for fund
b) A source of fund
c) No flow of fund
Ans. b) A source of fund

32. The sale of investments indicate
a) Source of fund
b) Application of fund
c) Change in C.A.
Ans. a) Source of fund

33. Cash from operations is equal to
a) Net profit plus the increase in outstanding expenses
b) Net profit plus the increase in debtors.
c) Net profit plus the increase in stock
Ans. a) Net profit plus the increase in outstanding expenses

34. An increase in the number of debtors results in
a) Decrease in cash
b) Increase in cash
c) No change in cash
Ans. a) Decrease in cash

35. An increase in the number of bills payable results in
a) Increase in cash
b) Decrease in cash
c) No change in cash
Ans. a) Increase in cash

36. In cost accounting, marginal cost does not include …….
Ans. Fixed cost

37. In absorption costing, ……… cost is added to the investment.
Ans. Fixed cost

38. Sales ………. Variable cost = F.C + ………
Ans. Profit

39. Contribution minus ………….. cost in profit.
Ans. Fixed cost

40. At I.E.P ……….. is equal to F.C.
Ans. Contribution

41. A higher P/W ratio indicates ……………..profitability.
Ans. Greater

42. In marginal costing, fixed costs are charged to ………..
Ans. Costing P & V A/C

43. The BEP is ………. When the selling price increases.
Ans. Decreased

44. In marginal costing, the stock is valued at ………….
Ans. Variable cost

45. When the volume of production is nil, the loss will be equal ………
Ans. Variable cost

46. In marginal cost, V.E are charged to ……… & F.C is charged to ……….
Ans. Products, costing P & L A/C

47. At B.E.P. total cast is equal to ………..
Ans. Sale value

48. The selling price per unit is Rs.20, V.C Rs.12 per unit and fixed cost Rs.16,000 the break-even production unit:-
(a) 800
(b) 2,000
(c) 3,000
Ans: (b) 2,000

49. Sales Rs. 20,000,V.C. Rs.12,000 & F.C Rs.4,000, the break-even sales
(a) 12,000
(b) 10,000
(c) 1,500
Ans: (b) 10,000

50. Sales Rs. 20,000,V.C. Rs.12,000 & F.C Rs.4,000, P/V ratio is.
(a) 80%
(b) 40%
(c) 30%
Ans: (b) 40%

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