A company’s net sales are ₹ 15,00,000; cost of sales is ₹ 10,00,000 and indirect expenses are ₹ 3,00,000, the amount gross profit will be:
1.₹ 13,00,000
2. ₹ 5,00,000
3.₹ 2,00,000
4. ₹ 12,00,000
A company’s shareholders fund was 7 8,00,000 in the year 2015. It because 7 12,00,000 in the year 2016. What is percentage of change ?
1.100%
2.25%
3. 50%
4.33.3%
Amount set aside to meet losses due to bad debts is called:
1. Reserve
2.Provision
3.Liability
4. None of these
An annual report is issued by company to its :
1. Directors
2. Auditors
3. Shareholders
4.Management
Analysis of financial statements involve :
1.Trading A/c
2. Profit & Loss statement
3.Balance Sheet
4. All the above
Balance Sheet provides information about financial position of the enterprise :
1. At a Point of Time
2.Over a Period of Time
3.For a Period of Time
4. None of the above
Break-even Analysis shows:
1.Relationship between cost and sales
2. Relationship between production and purchases
3.Relationship between cost and revenue
4.None of these
Break-even point refers to that point where :
1.Total Costs are more than Total Sales
2. Total Costs are less than Total Sales
3.Total Costs are half of the Total Sales
4.Total Cost are equal to total sales
Common-size financial statements are mostly prepared:
1. In proportion
2. In percentage
3.(a) and (b) both
4.None of these
Common-size Statement are also known as:
1. Dynamic Analysis
2. Horizontal Analysis
3.Vertical Analysis
4.External Analysis
Comparative financial analysis process shows the comparison between the items of which statement:
1.Balance Sheet
2. Profit & Loss Statement
3.(a) and (b) both
4. None of these
Comparative Financial Statements show:
1.Financial position of a concern
2.Earning capacity of a concern
3.Both of them
4. None of these
Comparative Statements are also known as :
1.Dynamic Analysis
2. Horizontal Analysis
3. Vertical Analysis
4. External Analysis
Debentures are shown in the Balance Sheet under the head of:
1. Short-term Loan
2. Secured Loan
3.Current Liability
4. Share Capital
Divident is usually paid :
1.On Authorised Capital
2.On Ussued Capital
3.On Paid-up Capital
4. On Called-up Capital
Financial analysis is significant because it:
1. Ignores qualitative aspect
2. Judges operational efficiency
3.Suffers from the limitations of financial statements
4.It is affected by personal ability and bias of the analysis
Financial analysis is useful:
1. For Investors
2. For Shareholders
3. For Debenture holders
4. All the above
For calculating trend percentages any year is selected as:
1.Current year
2. Previous year
3.Base year
4.None of these
Goodwill of a company is shown on the assets side of the Balance Sheet under the head.
1.Current Assets
2.Non-current Assets
3. Miscellaneous Expenditure
4. None of these
Horizontal Analysis is also known as :
1. Dynamic Analysis
2. Structural Analysis
3.Static Analysis
4.None of these
If total assets of a firm are 7 10,00,000 and its non-current assets are 7 6,00,000, what will be the percentage of current assets on total assets ?
1. 60%
2.50%
3.40%
4.30%
If total assets of a firm are 7 12,00,000 and its non of non-current assets to total assets ?
1. 50%
2.75%
3. 25%
4. 80%
In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to :
1. 1,000
2.100
3.10
4.1
In which meeting of company directors report is presented ?
1. Directors Meeting
2.Annual General Meeting
3.Manager’s Meeting
4. All of the above
Interpretation of Financial Statements includes:
1.Criticisms and Analysis
2. Comparison and Trend Study
3.Drawing Conclusion
4. All the above
On the basis of process, which of the following is the type of financial analysis ?
1. Horizontal Analysis
2. Vertical Analysis
3.Ratio Analysis
4. (a) and (b) both
Out of the following which parties are interested in financial statements ?
1.Managers
2.Financial Institutions
3. Creditors
4. All the these
Payment of Income Tax is considered as :
1.Direct Expenses
2.Indirect Expenses
3. Operating Expenses
4. None of these
Profit & Loss Account is also called :
1.Balance Sheet
2. Income Statements
3. Operating Profit
4. Investment
Sales less Cost of goods sold is called :
1. Operating Profit
2. Gross Profit
3.Net Profit
4. Total Profit
Securities Premium Account is shown on the liabilities side in the Balance Sheet Under heading
1.Reserves and Surplus
2.Current Liabilities and Provisions
3. Share Capital
4.Contingent Liabilities
Share capital is shown in Balance Sheet under. the head ?
1.Authorised Capital
2. Issued Capital
3.Paid-up Capital
4. Shareholders’ Funds
Tangible assets of company increased from T 4,00,000 to T 5,00,000. What is the percentage of change ?
1. 20%
2.25%
3. 33%
4.50%
The analysis of financial statement by a shareholder is an example of:
1. External Analysis
2.Internal Analysis
3.Vertical Analysis
4. Horizontal Analysis
The financial statements of a business enterprise include:
1.Balance Sheet
2.Profit & Loss Account
3.Cash Flow Statement
4.All the above
The form of Balance Sheet as per Companies Act, 2013 is:
1. Horizontal
2. Horizontal or Vertical
3.Vertical
4.None of these
The most commonly used tools for financial analysis are:
1.Comparative Statements
2.Common-size Statement
3.Accounting Ratios
4.All the above
The prescribe from the Balance Sheet has given in the Schedule:
1. VI Part I
2.VI Part II
3.III Part I
4.VII Part IV
Tools for comparison of financial statements are :
1.Comparative Balance Sheet
2.Comparative Income Statement
3.Common-size Statement
4.All the above
Trend ratios and trend percentage are used in :
1. Dynamic analysis
2. Static analysis
3.Horizontal analysis
4.Vertical Analysis
Vertical Analysis is also known as :
1. Static Analysis
2. Dynamic Analysis
3.Structural Analysis
4. None of these
What is shown by Balance Sheet ?
1. Accuracy of books of accounts
2.Profit or loss of a specific period
3. Financial position on a specific date
4.None of the above
What is shown by the Income Statement ?
1.Accuracy of books of accounts
2.Profit or loss of a certain period
3.Balance of Cash Book
4.None of these
Which of the following assets is not shown undeer the head ‘Fixed Asset’ in the Balance Sheet ?
1. Goodwill
2. Bills Receivable
3. Buildings
4. Vehicle
Which of the following is not a limitations of financial statement analysis ?
1. To measure the financial strength
2. Affected by window-dressing
3.Do not reflect changes in price level
4.Lack of Qualitative Analysis
Which of the following is the purpose or objective of financial analysis ?
1. To assess the current profitability of the firm
2.To measure the solvency of the firm
3. To assess the short-term and long-term liquidity position of the firm
4.All the above
Which of the following shows the actual financial position of n enterprise ?
1.Fund Flow
2. Balance Sheet
3.P & L A/c
4. Ratio Analysis
Which of the following statement is correct ?
1. Assets = Liabilities + Shareholders funds
2. Assets = Total funds
3.Assets = Funds of outsiders .
4. None of the above
Which of these are not the method of financial statement analysis ?
1.Ratio Analysis
2. Comparative Analysis
3.Trend Analysis
4. Capitalisation Method
Which Section of the Companies Act, 2013 requires that the Balance Sheet to be prepared in prescribed form ?
1.Section 128
2.Section 130
3. Section 129
4.Section 212