Financial Statement of Corporate Organisations Set 2
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This set of Analysis of Financial Statements Multiple Choice Questions & Answers (MCQs) focuses on Financial Statement of Corporate Organisations Set 2
Q1 | Which from the following is NOT an example of intangible assets?
- trademarks
- patents
- buildings
- technical expertise
Q2 | The following are the examples of financial assets except?
- stocks
- bank loan
- bond
- raw material
Q3 | Business finance refers to ...... and ........ employed in a business.
- money
- credit
- both a & b
- none of the above
Q4 | Business finances is concerned with _________ funds and _______ funds from different sources.
- estimation of funds
- raising of funds
- short term finance
- both a & b
Q5 | Which of the following is not a function of finance manager?
- mobilization of funds
- deployment of funds
- control over use of funds
- manipulate share price of the company
Q6 | Which is the following main decision taken by the financial manager in a company?
- income decision
- financing decision
- appraisal decision
- budget decision
Q7 | Finance Function comprises
- safe custody of funds only
- expenditure of funds only
- procurement of finance only
- procurement & effective use of funds
Q8 | The finance manager is accountable for.
- earning capital assets of the company
- effective management of a fund
- arrangement of financial resources
- proper utilization of funds
Q9 | The focal point of financial management in a firm is:
- the number and types of products or services provided by the firm.
- the minimization of the amount of taxes paid by the firm.
- the creation of value for shareholders.
- the dollars profits earned by the firm.
Q10 | The term financial statement refers to…
- income statement
- cash flow and fund flow
- balance sheet
- all
Q11 | Which of the following is the main objective of a financial statement?
- to know the solvency
- to know the debt capacity
- to know the earning capacity
- all
Q12 | In financial statements, the fixed assets are shown at …
- market price
- cost price
- replacement price
- none
Q13 | What is followed while preparing the financial statements?
- accounting conventions
- accounting principles
- accounting concepts
- all
Q14 | In financial statement the stock is valued at cost or market price whichever is less on the basis of…
- accounting concepts
- accounting conventions
- accounting principles
- none
Q15 | The balance sheet shows …
- the source of working capital
- the change in working capital
- both
- none
Q16 | The analysis and interpretations of the financial statement will reveal …
- the financial position
- the profitability
- none
- both
Q17 | The process of explaining the meaning, significance and relationship between two financial factors iscalled …
- summarization
- analysis
- interpretation
- none
Q18 | The process of comparing various financial factors of a company over a period of time is known as …
- inter‐firm comparison
- ratio analysis
- intra‐firm comparison
- inter‐industry comparison
Q19 | Which of the following is technique of financial statement analysis?
- common‐size statement
- comparative statement
- trend analysis
- all
Q20 | ________is a simply the amount of cash coming in to a business.
- cash flow
- inflow
- both a and b
- none of the above.
Q21 | If value of opening inventories increases, what happens to the value of gross profit?
- decreases
- increases
- stays the same
- gets closer to net profit
Q22 | Incorrect cash flow planning can lead to ________
- solvency
- insolvency
- bankruptcy
- failure
Q23 | Analysis of any financial Statement comprises
- balance sheet
- p&l account
- trading account
- all of the above
Q24 | Which of the following are techniques, tools or methods of analysis and interpretation of financialstatements?
- ratio analysis
- average analysis
- trend analysis
- all of the above
Q25 | Interpretation of accounts is the
- art and science of translating the figures
- to know financial strengths and weaknesses of a business
- to know the causes for the prevailing performance of business
- all of the above