Financial Statement of Corporate Organisations Set 1
On This Page
This set of Analysis of Financial Statements Multiple Choice Questions & Answers (MCQs) focuses on Financial Statement of Corporate Organisations Set 1
Q1 | Business finance includes........
- procurement of funds and utilization of funds
- management of funds
- allocation
- insurance
Q2 | Funds are required for the..........
- purchase of land & building
- purchase of machinery
- purchase of another fixed asset
- all of the above
Q3 | Which report gives a review on the profitability of a business?
- statement of changes in equity
- cash flow statement
- balance sheet
- income statement
Q4 | The term ‘Financial Statement’ covers
- profit & loss statement
- balance sheet and profit & loss statement appropriation account
- profit & loss statement and balance sheet
- all of above are false
Q5 | Which of the following is true about financial statements?A) Financial statement gives a summary of accounts. B) Financial statements can be stated asrecorded facts.
- only a
- only b
- both a and b
- none of the above
Q6 | P&L statement is also known as
- statement of operations
- statement of income
- statement of earnings
- all of the above
Q7 | Which statement shows the flow of cash and cash equivalents during the financial period?
- statement of changes in equity
- cash flow statement
- balance sheet
- income statement
Q8 | Subtracting all expenses from revenues yields?
- net profit / net loss
- carrying value
- long term assets
- net liabilities
Q9 | Balance sheet of a company is required to be prepared in the format given in ………………………
- schedule iii part ii
- schedule iii part i
- schedule iii part iii
- table a
Q10 | As per Companies Act, the Balance Sheet of a company is required to be presented in ………………………
- horizontal form
- vertical form
- either horizontal or vertical form
- neither of the above
Q11 | Which of the following is not required to be prepared under the Companies Act?
- statement of profit and loss
- balance sheet
- report of director’s and auditor’s
- funds flow statement
Q12 | According to prescribed order of assets in a Company’s Balance Sheet ……………………… assets shouldbe shown first of all.
- non-current assets
- current assets
- current investments
- loans and advances
Q13 | Calls in Arrears appear in a Company’s Balance Sheet under ………………..
- reserve & surplus
- shareholder’s funds
- contingent liabilities
- short-term borrowings
Q14 | Calls in advance appear in a Company’s Balance Sheet under ………………..
- share capital
- current liability
- long-term borrowings
- reserve & surplus
Q15 | Bills Receivables appear in a Company’s Balance Sheet under the Sub-head ……………………..
- current investments
- cash equivalents
- trade receivables
- short term loans and advances
Q16 | Which of the following options is not recorded in the Balance sheet?
- cash
- rent expenses
- building
- goodwill
Q17 | Which of the given area is NOT addressed by Business Finance?
- financing
- investing
- managing day today expenses
- none of the given options
Q18 | Which of the following is measured by profit margin?
- operating efficiency
- asset use efficiency
- financial policy
- dividend policy
Q19 | Business Finance addresses which of the following?
- capital budgeting
- capital structure
- working capital management
- all of the given options
Q20 | Finance is vital for which of the following business activity (activities)?
- marketing research
- product pricing
- design of marketing and distribution channels
- all of the given options
Q21 | Which of the following refers to the difference between the sale price and cost of inventory?
- net loss
- net worth
- markup
- markdown
Q22 | Who of the following make a broader use of accounting information?
- accountants
- financial analysts
- auditors
- marketers
Q23 | Which of the following statement is considered as the accountant’s snapshot of firm’s accounting valueas of a particular date?
- income statement
- balance sheet
- cash flow statement
- retained earning statement
Q24 | Balance Sheet is based upon which of the following formula?
- assets = liabilities – stockholder’s equity
- assets + liabilities = stockholder’s equity
- assets + stockholder’s equity = liabilities
- assets = liabilities + stockholder’s equity
Q25 | The conflict of interest between stockholders and management is known as:
- agency problem
- interest conflict
- management conflict
- agency cost