Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter 4: Analysis of Financial Statement MCQ Questions

10 Questions 20 Minutes

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Your Class 12 Accountancy - Company Accounts and Analysis of Financial Statements Study Path

Question 1

Who has the interest in long-term solvency position of the firm?

A Short-term money lenders

B Financial Institutions

C Bankers providing overdraft facilities

D Creditors

Question 2

Which of the following is not an objective of financial statement analysis?

A Solvency of the Enterprise

B Profitability of the Enterprise

C Price Level Changes

D Efficiency of the Management

Question 3

Which of the following is not recognized as tool for the analysis of financial statements?

A Statement showing distribution of dividends

B Trend Analysis

C Funds Flow Statement

D Cash Flow Statement

Question 4

Which of the following objectives is not met by comparative statement of Profit and Loss?

A It helps to know the percent changes in the statement of Profit and Loss

B It helps to know the changes in the financial position

C It helps to assess absolute changes

D It helps to compare the figures of atlest two years

Question 5

Which of the following is the objective of comparative statement?

A To detect financial irregularities

B To help in forcasting

C To make data comparative

D To making data simple

Question 6

Which of the following is not a tool of financial statement analysis?

A Comparative Financial Statements

B Ratio Analysis

C Statement showing distribution of dividend

D Cash Flow Statement

Question 7

Which of the following is not a limitation in the analysis of financial statements?

A Bias of the Analyst

B Financial performance of the firm

C Window Dressing

D Ignores Price Level Changes

Question 8

Analysis of financial statements for two or more years is known as

A Internal analysis

B Vertical analysis

C External analysis

D Horizontal analysis

Question 9

Who of the following has no financial interest in the analysis of financial statements?

A Investor

B Creditor

C Debtor

D Management

Question 10

Financial analysis can be done with which of the following tool?

A All of the above

B Comparative Statements

C Cash Flow Statement

D Ratio Analysis

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Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter 4: Analysis of Financial Statement MCQ Questions

Your Class 12 Accountancy - Company Accounts and Analysis of Financial Statements Study Path

Who has the interest in long-term solvency position of the firm?

Which of the following is not an objective of financial statement analysis?

Which of the following is not recognized as tool for the analysis of financial statements?

Which of the following objectives is not met by comparative statement of Profit and Loss?

Which of the following is the objective of comparative statement?

Which of the following is not a tool of financial statement analysis?

Which of the following is not a limitation in the analysis of financial statements?

Analysis of financial statements for two or more years is known as

Who of the following has no financial interest in the analysis of financial statements?

Financial analysis can be done with which of the following tool?

Practice Complete!

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