This quiz works best with JavaScript enabled. Home > Accounting > Financial Statement Analysis > Financial Statement Analysis – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Statement Analysis Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the basic financial statements is best used to answer questions about changes in owner's equity that are not explained by the income statement? A) Balance sheet. B) Statement of shareholder's equity. C) Income statement. D) Cash flow statement. Show Answer Correct Answer: B) Statement of shareholder's equity. 2. Which of the following is not a liquidity ratio? A) Defensive interval ratio. B) Cash ratio. C) Rate of return on equity. D) Quick ratio. E) NOT IN THE CHOICES. Show Answer Correct Answer: C) Rate of return on equity. 3. All of the following items are typical of a multiple-step income statement except for: A) Total costs and expenses. B) Gross profit. C) Net sales. D) Operating income. Show Answer Correct Answer: A) Total costs and expenses. 4. Competitive ratio is comparing ratio of the firm with the another firm within the same industry. A) True. B) False. Show Answer Correct Answer: A) True. 5. Form-II of CMA format is named as? A) Operating Statement. B) Analysis of Balance Sheet. C) Fund Flow Statement. D) Cash Flow Statement. Show Answer Correct Answer: A) Operating Statement. 6. What is a Financial Report? A) Wife's shopping report to husband. B) Reports used in banking transactions. C) Reports containing financial information about business entities. D) Reports containing debts and receivables of business entities only. Show Answer Correct Answer: C) Reports containing financial information about business entities. 7. The debt ratio is a measure of a firm's ..... A) Leverage. B) Profitability. C) Liquidity. D) Efficiency. Show Answer Correct Answer: A) Leverage. 8. Records of a company's financial information in an accounting period that can be used to describe the company's performance are called..... A) Financial statements. B) Audit report. C) Management reports. D) Accountability Report. Show Answer Correct Answer: A) Financial statements. 9. Which of the following financial statements should have the highest credibility? A) In-House Financial Reports. B) Audited Financial Reports. C) Pro Forma Financial Report. D) Management Financial Report. Show Answer Correct Answer: B) Audited Financial Reports. 10. What does the return on total assets (ROA) ratio measure? A) Operating income per dollar of sales. B) Net income per dollar of sales. C) Net income to total assets. D) Net income to common equity. Show Answer Correct Answer: C) Net income to total assets. 11. Net Working Capital (NWC) can be calculated as? A) Total Current Assets-Total Current Liabilities. B) Long Term Sources-Long Term uses. C) (Net Worth + Term Liabilities)-(Total Assets-current assets). D) Any of the above. Show Answer Correct Answer: D) Any of the above. 12. Limitation of financial analysis is A) Dressing. B) Window. C) Window Dressing. D) None. Show Answer Correct Answer: C) Window Dressing. 13. If a firm has a positive tax rate, a positive ROA, and the interest rate on debt is the same as ROA, then ROA will be A) Greater than the ROE. B) Equal to the ROE. C) Less than the ROE. D) Greater than zero, but it is impossible to determine how ROA will compare to ROE. E) Negative in all cases. Show Answer Correct Answer: A) Greater than the ROE. 14. What are cash equivalents? A) An investment which can be realised within a short period of time (upto 90 days) without deterioration in the value of assets. B) Any assets which can be converted into cash easily. C) Bank Balances. D) Long term investments. Show Answer Correct Answer: A) An investment which can be realised within a short period of time (upto 90 days) without deterioration in the value of assets. 15. Which is not a profitability ratio? A) Earnings per share. B) Dividend yield. C) Price/earnings ratio. D) Rate of return on net sales. E) NOT IN THE CHOICES. Show Answer Correct Answer: E) NOT IN THE CHOICES. 16. Term loans are to be repaid out of future earnings of the unit. Working capital loans are to be repaid out of ..... ? A) Realisation of fixed assets. B) Profits. C) Realisaiton of non core assets. D) Realisation of current assets. Show Answer Correct Answer: D) Realisation of current assets. 17. A Company has changed the method of applying Depreciation from WDV to SLM. What will the impact on the Cash Accruals for the particular year in which, change happened? A) No impact. B) Cash Accruals will either increase or decrease, depend upon the case to case basis. C) Cash Accruals will decrease for the particular year in which, change happened. D) Cash Accruals will increase for the particular year in which, change happened. Show Answer Correct Answer: A) No impact. 18. The allocation of the costs of acquiring natural resource assets based on the level of processing or production is called A) Depreciation. B) Depletion. C) Accretion. D) Amortization. Show Answer Correct Answer: B) Depletion. 19. Which of the following ratios represents dividends per common share in relation to market price per common share? A) Dividend payout. B) Dividend yield. C) Price/earnings. D) Book value per share. Show Answer Correct Answer: B) Dividend yield. 20. Audited Financial Reports must be submitted for Debtors with what total assets and/or sales? A) Total Assets and/or Sales $\geq$ IDR 0 Bn. B) Total Assets and/or Sales $\geq$ IDR 25 Bn. C) Total Assets and/or Sales $\geq$ IDR 50 Bn. D) None of above. Show Answer Correct Answer: C) Total Assets and/or Sales $\geq$ IDR 50 Bn. ← PreviousNext →Related QuizzesAccounting QuizzesFinancial Statement Analysis Quiz 1Financial Statement Analysis Quiz 2Financial Statement Analysis Quiz 3Financial Statement Analysis Quiz 4Financial Statement Analysis Quiz 5Financial Statement Analysis Quiz 6Financial Statement Analysis Quiz 7Financial Statement Analysis Quiz 8Financial Statement Analysis Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books