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Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 2 (60 MCQs)

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1. If cost of goods sold is 150000 closing stock is 40000 opening stock is 60000 then calculate the amount of purchase
2. The Retained Earnings account always increases at the end of the fiscal period.
3. To calculate the % operating expense on turnover; the formula is:
4. If the operating cycle cannot be identified, it is assumed to be a period of
5. Operating ratio best shows which relationship?
6. Furniture, equipment, land, buildings owned are all examples of:
7. Choose the current assets from following
8. State whether each of the following is True or FalseIn a Common size statement each item is expressed as a percentage of some common base.
9. The rate at which the business needs to spend cash to cover overhead costs before beginning to generate a positive cash flow is called the
10. What is the value of gross profit margin?
11. Which ratio measures profit generated per dollar of sales?
12. The analysis of increases and decreases in individual items in comparative financial statements is called:
13. Each dollar amount on a financial statement is also stated as a percentage of a base amount on the same statement
14. Ozark Company has a profit margin of 12%. This means,
15. Trading account is prepared to know
16. Adjustment of outstanding expenses will be
17. Short term loan is a current liability
18. What is gross profits as per the income statement?
19. Working Capital is Current Assets subtracted from Current Liabilities
20. Closing stock shown inside the trial balance is shown in
21. If a stock has a beta greater than 1, it means that the stock is:
22. Owner's equity is calculated by
23. Why are financial statements important for businesses?
24. Analysis simply means ..... data.
25. Financial analysis is used only by the creditors.
26. What is the net worth of a company also known as?
27. If Sales are 160, 000 and Total Expenses are 160, 000 and Total Expenses are 160, 000 and Total Expenses are 120, 000, what is the operating ratio?
28. Which statement would you examine to understand a company's debts and assets?
29. Total Assets of a firm is Rs 80 lakh. Its net worth and term liabilities are Rs 15 and 20 lakh respectively. calculate current liability?
30. The three most important financial reports are:
31. Which of the following is considered a current asset on the Balance Sheet?
32. What is the vaule of financial leverage?
33. What does a beta of 1 represent?
34. From the given items which is a part of current liabilities
35. Salaries and wages appearing in trial balance is shown
36. When you study a company's business model, product mix, competition, management, and brand, you are studying ..... measures.
37. Income tax in case of sole trader is treated as
38. Prepaid Insurance existing in the Trial Balance is shown in the Balance Sheet in the assets side because of
39. The current ratio helps us to determine whether:i) The business will be able to meet their long-term obligationsii) The business will be able to meet their short-term obligationsiii) The business is carrying too much inventoryiv) The business is not paying their long-term debtv) The business is not paying their short-term debtvi) The business is carrying too much cash
40. ISA 520 The auditor may obtain the availability and reliability of information needed to apply substantive analytical procedures, and the results of any such analytical procedures performed by the entity.Who are preparing the availability and reliability of information needed to apply substantive analytical procedures?
41. An entrepreneur should prepare a cash flow statement
42. Income received in advance is deducted from the income because of
43. What is the formula for calculating the current ratio?
44. Owner's Equity 10 lakh, Creditors 8 lakh, TL 12 lakh, Debtors 6 lakh, FA 4 lakh, Investment in Group Co. 7 lakh, stock 8 lakh, software 5 lakh. Please calculate ATNW?
45. Which type of accounting provides information to external parties?
46. To obtain appropriate audit evidence consists the reliable evidence information such as confirmations must be controlled by:
47. Studying a company's financial statements and using comparisons and ratios is called ..... measures.
48. Financing Activities show how a company raises and repays capital through:
49. Which of the following items would not appear on an income statement?
50. Which step comes first when preparing an income statement for a service business?
51. Which of these would be considered to be a current asset by a business?
52. Calculate gross profit if rate of gross profit is 25% on sales and cost of goods sold are 180000
53. What is the value of net profit margin?
54. The costs incurred in the day-to-day operations of an organization.
55. "Gross Profit Margin" calculates:
56. What is the role of auditors in verifying financial statements?
57. Closing stock is shown in Financial Statements at:
58. What can be inferred if there is a large discrepancy between profit and cash flow?
59. Which statement summarizes revenue and expenses for a specific accounting period?
60. The source of information for preparing the income statement is the general ledger.
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