Practice Test

Q1) The methodical classification of financial statement is called_______. Show Answer

Q2) The common size statement requires______. Show Answer

Q3) The short term deposits are______ Show Answer

Q4) Cash proceeds from issue of debentures is______ Show Answer

Q5) Bills payable is_______ Show Answer

Q6) Generally Current ratio should be _____ Show Answer

Q7) The relationship between net profit before tax, interest and dividend and capital employed is known from______ Show Answer

Q8) From financial statement analysis, the creditors are interested to known______ Show Answer

Q9) The information supplied by financial statements are ______ in nature. Show Answer

Q10) In financial statement only_____ aspects are measured. Show Answer

Q11) Current ratio= Show Answer

Q12) Financial statements include only balance sheet Show Answer

Q13) Analysis of financial statement is a tool but not a remedy. Show Answer

Q14) Purchase of fixed assets is operating cash flow Show Answer

Q15) Gross profit depends upon net sales Show Answer

Q16) Ratio is calculated on ownership capital only Show Answer

Q17) Net Profit shows quick ratio Show Answer

Q18) Government is not interested in analysis of financial statement. Show Answer

Q19) Ratio Analysis is useful for inter-firm comparison Show Answer

Q20) Common size statement requires journal entries. Show Answer

Q21) The short term deposits are considered as cash equivalent Show Answer

Q22) Bills payable is long term loan Show Answer

Q23) Usually current ratio should be 3:1 Show Answer

Q24) From financial statement analysis, the creditors are interested to known profit earned. Show Answer