Analysis & interpretation of financial statement Set 1

Bachelor of Business Administration (BBA),

Bachelor of Banking and Insurance (BBI),

Bachelor of Commerce (B Com)

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Analysis & interpretation of financial statement Set 1

Q1 | The dividend is related to the market value of shares in .
Q2 | Turnover ratio is also known as .
Q3 | Inventory or stock turnover ratio is also called .
Q4 | Which ratio is calculated to ascertain the efficiency of inventory managementin terms of capital investment?
Q5 | The ratio which measures the relationship between the cost of goods sold andthe amount of average inventory is
Q6 | Sales – Gross Profit = .
Q7 | Opening stock + purchases + direct expenses – closing stock =
Q8 | Debtors turnover ratio is also called .
Q9 | Creditors turnover ratio is also called .
Q10 | Which of the following shows details and results of the company's profitrelated activities for a period of time?
Q11 | Which of the following financial statements is also known as a statement offinancial position?
Q12 | A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs.2,00,000 and Expenses of Rs.1,00,000. What is the Net Profit Ratio?
Q13 | Which technique used for figures of two or more periods are placed side byside to facilitate easy and meaningful comparisons?
Q14 | Which of the following are techniques, tools or methods of analysis andinterpretation of financial statements?
Q15 | Which of the following is NOT a key ratio in the prediction of bankruptcy asdeveloped by Edward Altman?
Q16 | _______________ ratios measure the ability of a firm to earn an adequatereturn on sales, total assets and invested capital.
Q17 | The ________ ratios help determines the degree of financial risk and earningsvolatility present in a firm.
Q18 | __________ analysis is the process of studying a series of ratios for a companyand/or industry over time.
Q19 | The ideal level of current ratio is
Q20 | The most precise test of liquidity is
Q21 | Debt-equity ratio is a sub-part of
Q22 | Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000.Determine value of stock.
Q23 | Funds flow statements are prepared so as to
Q24 | Net Profit ratio is calculated by
Q25 | If sales is Rs 5, 00,000 and net profit is Rs 1, 20,000 Net Profit ratio is
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