Analysis of Financial Statements MCQ Questions Class 12 Accountancy Part II Chapter 4
NCERT MCQ Questions for Class 12 Accountancy Part II Chapter 4 Analysis of Financial Statements. Analysis of Financial Statements MCQ Questions with Answers from Class 12 Accountancy Part II.
(1) The judgmental process that aims to estimate current and past financial positions and the results of the operations of an enterprise is called ———.
(a) Financial Analysis
(b) Profit analysis
(c) Financial Statement Analysis
(d) Both (b) and (c).
Ans: (c) Financial Statement Analysis.
(2) Financial analysis includes analysis —— of financial data.
(a) Analysis
(b) Formulation
(c) Interpretation
(d) Both (a) and (c)
Ans: Analysis interpretation.
(3) For a finance manager, analysis of financial statements helps to determine ——.
(a) The cause of major deviations
(b) Investment value of business
(c) Credit ratings
(d) All of these
Ans: (C) All of these
(4) These are the statements and are considered as a tool for analysing financial statements. Name them ——.
(a) Cash flow Analysis
(b) Common size statement
(c) Comparative statements
(d) both (b) and (c).
Ans: (d) both (b) and (c).
(5) The statement that shows the profitability and financial position of a firm for different period of time is called ——–.
(a) Balance sheet
(b) Common size Statement
(c) Comparative statement
(d) Cash flow statement.
Ans: (c) Comparative statement
(6) It is a technique of studying the operational results and financial position of a series of years. Identify the tool for financial analysis discussed ——–.
(a) Ratio Analysis
(b) Cash flow Analysis
(c) Both (a) and (b)
(d) Trend Analysis
Ans: (d) Trend Analysis.
(7) The most commonly used tools for analysing financial statement is ——-.
(a) Cash flow statement
(b) Balance sheet
(c) Horizontal analysis
(d) Ratio analysis
Ans: (d) Ratio analysis
(8) ———- expresses all times of a financial statement as a percentage of some common base.
(a) Comparative sentence.
(b) Cash flow statement
(c) Common size statement
(d) All of these
Ans: (c) Common size statement
- In case you have missed:- Previous Chapter MCQ Questions
(9) This statement shows the absolute and relative changes in the final position for both current & previous year. Name it ——–.
(a) Cash flow statement
(b) Comparative statement
(c) Balance sheet
(d) Common size statement
Ans: (b) Comparative Statement
(10) Comparing a company’s position with the related industry as a whole in possible through ——–.
(a) Comparative statement
(b) Balance sheet
(c) Common size statement
(d) Profit & Loss A/C
Ans: (c) Common Size Statement.
(11) The information regarding the financial position of a business over a period of time is depicted through ——-.
(a) Profit & Loss A/C
(b) Trading Account
(C) Comparative Statement
(d) Balance Sheet
Ans: Balance Sheet
(12) Comparative Statements are also known as ——–.
(a) Horizontal analysis
(b) Dynamic analysis
(c) External analysis
(d) Vertical analysis
Ans: (a) Horizontal analysis
(13) ——- are the limitations of financial analysis.
(a) Ignores non – monetary aspects
(b) Does not reflect the past position
(c) Does not consider price level changes
(d) Both (a) and (c).
Ans: (d) both (a) and (c).
(14) This financial analysis tools helps to define a relationship between various items of balance sheet. Identify it ——–.
(a) Comparative Statement
(b) Common Size Statement
(c) Ratio Analysis
(d) Cash flow Statement.
Ans: (c) Ratio Analysis
(15) The analysis of movement of cash/money inflow and outflow in an organisation is done by ——–.
(a) Ratio Analysis
(b) Trend Analysis
(C) Cash Flow Analysis
(d) All of these.
Ans: (C) Cash Flow Analysis.
- In case you have missed:- Next Chapter MCQ Questions
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