This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Accountancy Chapter 8 Analysis Of Financial Statements – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 9 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which market index is commonly used as a benchmark for beta? A) NASDAQ. B) Dow Jones Industrial Average. C) S&P 500. D) Russell 2000. Show Answer Correct Answer: C) S&P 500. 2. Operating Activities show cash generated or used during: A) The initial offering of shares to the public. B) The sale or purchase of buildings, land, or equipment. C) Normal Day to Day activities. D) None of the answers are correct. Show Answer Correct Answer: C) Normal Day to Day activities. 3. What is the formula for calculating the earnings per share (EPS) ratio? A) EPS = (Net Income-Preferred Dividends) * Average Outstanding Shares. B) EPS = (Net Income-Preferred Dividends) / Average Outstanding Shares. C) EPS = (Net Income + Preferred Dividends) / Average Outstanding Shares. D) EPS = Net Income / Average Outstanding Shares. Show Answer Correct Answer: B) EPS = (Net Income-Preferred Dividends) / Average Outstanding Shares. 4. Money owed to a company by its clients or customers who have promised to pay for products at a later date. A) Current Assets. B) Account Receivable. C) Current Liabilities. D) Account Payable. Show Answer Correct Answer: B) Account Receivable. 5. What do financial ratios generally show on a statement? A) Chronological order of entries. B) Exact cash receipts schedule. C) Listing of all asset accounts. D) Comparison between two figures. Show Answer Correct Answer: D) Comparison between two figures. 6. What does the cash flow statement reveal about a company? A) Number of employees. B) Actual cash movement. C) Geographical expansion. D) Total sales volume. Show Answer Correct Answer: B) Actual cash movement. 7. An amount earned by a corporation and not yet distributed to stockholders. A) Retained earnings. B) Dividends. C) Purchases allowance. D) Sales return. Show Answer Correct Answer: A) Retained earnings. 8. Four types of business structures are A) Sole trader. B) Partnership. C) Company. D) Trust. E) All the above. Show Answer Correct Answer: E) All the above. 9. What does a negative beta indicate? A) No correlation with the market. B) Inverse relationship with the market. C) Higher volatility than the market. D) Lower volatility than the market. Show Answer Correct Answer: B) Inverse relationship with the market. 10. If an investor wants to know how much out of every dollar of sales a company actually keeps in earnings, look at the company's financial statements and find the ..... A) Earnings per share. B) Profit margin. C) Sales. D) Debt margin. Show Answer Correct Answer: B) Profit margin. 11. Company has incurred a loss of Rs.10.00 lacs during FY 2021-2022. Under which head the loss of Rs.10.00 lacs will appear in Balance sheet? A) Current Liability. B) Current Assets. C) Term Liability. D) Intangible Assets. Show Answer Correct Answer: D) Intangible Assets. 12. The cash flow equation is A) Cash Outflow-Cash Inflow = Net Profit. B) Cash Outflow-Cash Inflow = Gross Profit. C) Cash Inflow-Cash Outflow = Net Cash. D) Cash Inflow-Cash Outflow = Net Profit. Show Answer Correct Answer: C) Cash Inflow-Cash Outflow = Net Cash. 13. While preparing Common Size Statement, each item of income statement is expressed as % of A) Total Income. B) Revenue from operation. C) Other Income. D) Profit before tax. Show Answer Correct Answer: B) Revenue from operation. 14. Heavy amount spent for advertisement of new company product is: A) Revenue Expenditure. B) Deferred Revenue Expenditure. C) Capital Expenditure. D) Either Revenue or Capital Expenditure. Show Answer Correct Answer: B) Deferred Revenue Expenditure. 15. Calculate the quick ratio for a company with current assets of $ 150, 000, inventory of $ 50, 000, and current liabilities of $ 80, 000. A) 1.25. B) 3.50. C) 0.75. D) 2.75. Show Answer Correct Answer: A) 1.25. 16. Calculate the debt ratio for a company with total liabilities of $ 1, 000, 000 and total assets of $ 2, 500, 000. A) 3.2. B) 1.5. C) 0.8. D) 0.4. Show Answer Correct Answer: D) 0.4. 17. What is net profits as per the income statement? A) $ 105.0M. B) $ 198.1M. C) $ 216.6M. D) $ 358.7M. Show Answer Correct Answer: C) $ 216.6M. 18. What is the formula to calculate net income? A) Net Income = Total Revenue x Total Expenses. B) Net Income = Total Revenue-Total Expenses. C) Net Income = Total Revenue / Total Expenses. D) Net Income = Total Revenue + Total Expenses. Show Answer Correct Answer: B) Net Income = Total Revenue-Total Expenses. 19. What are the four main financial statements? A) Equity Statement. B) Income Statement, Balance Sheet, Cash Flow Statement, Statement of Shareholders' Equity. C) Cash Statement. D) Profit Statement. E) Financial Report. Show Answer Correct Answer: B) Income Statement, Balance Sheet, Cash Flow Statement, Statement of Shareholders' Equity. 20. For Inter Firm comparison ..... A) A Comparative Statement is prepared. B) A common size statement is prepared. C) Balance Sheet is prepared. D) Income Statement is prepared. Show Answer Correct Answer: B) A common size statement is prepared. 21. Capital Stock is the only general ledger account classified as stockholders' equity A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. Goodwill, patents, trademarks, brand recognition are all intangible asset examples A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 23. An income statement shows the Financial Position of the company A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 24. The cost of goods sold (COGS) is calculated by which formula? A) Opening Inventory + Purchases-Closing Inventory. B) Purchases + Closing Inventory-Opening Inventory. C) Opening Inventory + Purchases + Closing Inventory. D) Closing Inventory-Purchases. Show Answer Correct Answer: A) Opening Inventory + Purchases-Closing Inventory. 25. Adjustment of interest on capital will be A) On debit side of profit and loss account. B) On credit side of profit and loss account. C) On asset side of balance sheet. D) On debit side of profit and loss account and added to capital on liability side. Show Answer Correct Answer: D) On debit side of profit and loss account and added to capital on liability side. ← PreviousNext →Related QuizzesClass 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 1Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 2Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 3Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 4Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 5Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 6Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 7Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 8Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 10Class 12 Accountancy Chapter 8 Analysis Of Financial Statements Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books