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Financial Statement Analysis Quiz 1 (30 MCQs)

Quiz Instructions

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1. Given instrument is always appears under Unsecured Loan
2. The question "Did the common stockholders receive an adequate return on their investment?" is answered through the use of
3. Comparison of values of one period with those of another period for the same firm is
4. Accountants need a related concept that addresses when to recognize the costs associated with the recognized revenue:the matching concept
5. Marty Company's benchmark total operating expense ratio is between 32.0% and 34.0%. An increase in its operating expense ratio from 33.1% to 34.2% is a favorable trend.
6. The price-earnings ratio is an example of a
7. According to the IASB Conceptual Framework, the fundamental qualitative characteristics that make financial statements useful are:
8. Contingent Liabilities on account of disputed tax liabilities will be shown in the Balance Sheet under?
9. What does ROA stand for?
10. Working Capital Gap is equal to?
11. Calculate the quick ratio for a company with current assets of $ 300, 000, inventory of $ 100, 000, and current liabilities of $ 150, 000.
12. Which of the following parties would perform an external financial analysis?
13. If the interest rate on debt is higher than ROA, a firm will ..... by increasing the use of debt in the capital structure.
14. Which of the following is not one of the three basic financial statements?
15. Preparation of Financial Statement is the responsibility of the management. What are the responsibilities of the Independent / Statutory Auditors?
16. Which of the statements about profit is incorrect?
17. The ..... is a measure of liquidity which excludes ....., generally the least liquid asset:
18. Which are components of Current Assets?
19. Under which sub-head will the following be classified or shown:(i) Long-term Borrowings; (ii) Deferred Tax Liabilities (Net); and (iii) Long-term Provision?
20. Which of the basic financial statements is best used to answer the question, "How profitable is the business?"
21. If Nico Corporation has annual purchases of RM300, 000 and accounts payable of RM30, 000, then average purchases per day are ..... and the average payment period is .....
22. Choose the appropriate ratio analysis:Current ratio
23. Why is FS analysis important?
24. Non-written off Miscellaneous Expenditure will appear under this head in Balance Sheet .....
25. Indicates how quickly a firm's credit accounts are being collected and is a good measure of how efficiently a firm is managing its accounts receivable.
26. Opening Inventory Rs.1, 00, 000; Closing Inventory Rs.1, 50, 000; Purchases Rs.6, 00, 000; Carriage Rs.25, 000; wages Rs.2, 00, 000. Inventory Turnover Ratio will be:
27. What is the inventory holding period in months for a unit with sales of Rs. 49.60 lakh, inventory of Rs. 6.50 lakh, cost of goods sold Rs. 39.00 lakh and trade receivables of Rs. 12.40 lakh?
28. An example of liquidity ratio is?
29. Before a credit proposal is submitted to the Credit Decision, whose approval does the use of KAP not recommended by CIMB Niaga require?
30. Measures to what degree the assets of the firm have been financed with borrowed funds.
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