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This set of Analysis of Financial Statements Multiple Choice Questions & Answers (MCQs) focuses on Ratio Analysis Set 1

Q1 | Profit for the objective of calculating a ratio may be taken as
Q2 | If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is
Q3 | General profitability ratios are based on
Q4 | Determine stock turnover ratio if, Opening stock is Rs 31,000 , Closing stock is Rs 29,000, Sales is Rs3,20,000 & Gross profit ratio is 25% on sales.
Q5 | The ratios which reveal the final result of the managerial policies and performance is .
Q6 | Return on investment is a
Q7 | Net profit ratio is a .
Q8 | Stock turnover ratio is a .
Q9 | Current ratio is a
Q10 | Proprietary ratio is a
Q11 | Fixed assets ratio is a
Q12 | Fixed assets turnover ratio is a
Q13 | The ratio which measures the profit in relation to capital employed is known as
Q14 | Return on equity is also called
Q15 | Preliminary expenses is an example of .
Q16 | Prepaid expenses is an example of .
Q17 | The ratio which is calculated to measure the productivity of total assets is
Q18 | The ratio which shows the proportion of profits retained in the business out of the current year’s profitsis
Q19 | The ratio establishes the relationship between profit before interest and tax and fixed interest charges is
Q20 | The ratio shows the preference dividend as a proportion of profit available for shareholders is
Q21 | The dividend is related to the market value of shares in .
Q22 | Turnover ratio is also known as .
Q23 | Inventory or stock turnover ratio is also called .
Q24 | The ratio which measures the relationship between the cost of goods sold and the amount of averageinventory is
Q25 | Sales – Gross Profit = .