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