1. |
Horizontal Analysis shows the comparison of data for several years against a chosen ---------------- year. |
A. | Base year |
B. | Previous year |
C. | Financial year |
D. | Calender year |
Answer» A. Base year |
2. |
Vertical analysis is made to review and analyse the financial statements of -----------------accounting period. |
A. | One |
B. | Two |
C. | Three |
D. | Four |
Answer» A. One |
3. |
Comparison of financial variables of a firm over a period of time is known as-------------- |
A. | Comparative |
B. | Common-size |
C. | Trend analysis |
D. | None of the above |
Answer» C. Trend analysis |
4. |
Interpretation requires analysis and ---------------------------------- |
A. | Comaprison |
B. | Determination |
C. | Decision Making |
D. | Conclusion |
Answer» A. Comaprison |
5. |
The process of deriving conclusions from the analysis is commonly termed as ---------------- |
A. | Analysis |
B. | Conclusion |
C. | Comparison |
D. | Interpretation |
Answer» D. Interpretation |
6. |
Common size Income Statement present the various items as a percentage of ---------------- |
A. | Sales |
B. | Credit sales |
C. | Cash sales |
D. | None of the above |
Answer» A. Sales |
7. |
External analysis is based on ------------- financial statements |
A. | Annual |
B. | Published |
C. | Prepared |
D. | Previous |
Answer» B. Published |
8. |
Financial Statements provide a summary of -------------------------- |
A. | Accounts |
B. | Assets |
C. | Liabilities |
D. | Expenses |
Answer» A. Accounts |
9. |
When financial statements for a number of years are reviewed and analysed, the analysis is known as --------------------- |
A. | Vertical nalysis |
B. | Internal analysis |
C. | Horizontal analysis |
D. | External analysis |
Answer» C. Horizontal analysis |
10. |
When ratios are calculated from the financial statements of one year, it is known as --------------------- |
A. | Horizontal analysis |
B. | Vertiacal analysis |
C. | Internal Analysis |
D. | External analysis |
Answer» B. Vertiacal analysis |
11. |
Horizontal analysis is also known as ----------------------- |
A. | Static analysis |
B. | Structural analysis |
C. | Dynamic analysis |
D. | None of these |
Answer» C. Dynamic analysis |
12. |
Trend analysis is significant for |
A. | Forecasting and budgeting |
B. | Profit planning |
C. | Capital rationing |
D. | None of the above |
Answer» A. Forecasting and budgeting |
13. |
In trend percentage the base year is ---------------------------- |
A. | The first year |
B. | Last year |
C. | Any year |
D. | Second year |
Answer» A. The first year |
14. |
Comparative statements are a form of --------------------------- |
A. | Horizontal analysis |
B. | Vertical analysis |
C. | Parellel analysis |
D. | None of the above |
Answer» A. Horizontal analysis |
15. |
The term financial ananlysis include both --------- and interpretation |
A. | Comparison |
B. | Analysis |
C. | Conclusion |
D. | Constructions |
Answer» B. Analysis |
16. |
Vertical analysis is also known as ------------------ |
A. | Dynamic analysis |
B. | Static analysis |
C. | External nalysis |
D. | Internal analysis |
Answer» B. Static analysis |
17. |
The statement prepared to disclose accounting information are known as----- |
A. | Comparative statements |
B. | Common size statements |
C. | Financial statements |
D. | None of the above |
Answer» C. Financial statements |
18. |
------------- gives a diagnosis of the profitability and financial position |
A. | Analysis of financial statements |
B. | Preparation of financial statements |
C. | Construction of statements |
D. | None of the above |
Answer» A. Analysis of financial statements |
19. |
------------------------ helps in drawing inferences of conclusions |
A. | Analysis |
B. | Interpretation |
C. | Comparison |
D. | None of the above |
Answer» B. Interpretation |
20. |
---------------- establishes the relationship of different individual items which same common items |
A. | Common size statements |
B. | Comparative statements |
C. | Trend analysis |
D. | Comparative Income Statement |
Answer» A. Common size statements |
21. |
Under ------------------------ each item of expenses taken as a percentage on net sales |
A. | Comparative income statement |
B. | Comparative balance sheet |
C. | Common size Balance sheet |
D. | Common size Income Statement |
Answer» D. Common size Income Statement |
22. |
----------- helps to disclose financial position |
A. | Trial Balance |
B. | Profit and Loss Account |
C. | Balance sheet |
D. | Income Statement |
Answer» C. Balance sheet |
23. |
Disclose accounting information |
A. | Balance sheet |
B. | Trading account |
C. | Profit and Loss Account |
D. | Financial statements |
Answer» D. Financial statements |
24. |
Afford full diagnosis of the profitability and financial position |
A. | Preparation of Profit and Loss Account |
B. | Balance Sheet |
C. | Final Accounts |
D. | Analysis of financial statements |
Answer» D. Analysis of financial statements |
25. |
Study of the trend of the same items of two or more balance sheets |
A. | Common size Profit and Loss A/C |
B. | Common size balance sheet |
C. | Comparative Income statement |
D. | Comparative Balance Sheet |
Answer» D. Comparative Balance Sheet |