CBSE Class 12 Accountancy Analysis of Financial Statements Quiz 3

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CBSE › Class 12 › Accountancy › Analysis of Financial Statements

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1. In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to :

A 1,000 B 100 C 10 D 1

2. Break-even point refers to that point where :

A Total Costs are more than Total Sales B Total Costs are less than Total Sales C Total Costs are half of the Total Sales D Total Cost are equal to total sales

3. Payment of Income Tax is considered as :

A Direct Expenses B Indirect Expenses C Operating Expenses D None of these

4. Vertical Analysis is also known as :

A Fluctuation Analysis B Static Analysis C Horizontal Analysis D None of these

5. Financial analysis is useful:

A For Investors B For Shareholders C For Debenture holders D All the above

6. Analysis of financial statements involve :

A Trading A/c B Profit & Loss statement C Balance Sheet D All the above

7. Financial analysis is significant because it:

A Ignores qualitative aspect B Judges operational efficiency C Suffers from the limitations of financial statements D It is affected by personal ability and bias of the analysis

8. What is shown by the Income Statement ?

A Accuracy of books of accounts B Profit or loss of a certain period C Balance of Cash Book D None of these

9. What is shown by Balance Sheet ?

A Accuracy of books of accounts B Profit or loss of a specific period C Financial position on a specific date D None of the above

10. Which of the following is the purpose or objective of financial analysis ?

A To assess the current profitability of the firm B To measure the solvency of the firm C To assess the short-term and long-term liquidity position of the firm D All the above

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