This document contains a 10 question quiz on financial statement analysis. The questions cover topics such as the purpose of financial analysis, calculating percentage changes, interpreting common size financial statements, and calculating liquidity ratios like the quick ratio using financial information provided.
This document contains a 10 question quiz on financial statement analysis. The questions cover topics such as the purpose of financial analysis, calculating percentage changes, interpreting common size financial statements, and calculating liquidity ratios like the quick ratio using financial information provided.
This document contains a 10 question quiz on financial statement analysis. The questions cover topics such as the purpose of financial analysis, calculating percentage changes, interpreting common size financial statements, and calculating liquidity ratios like the quick ratio using financial information provided.
This document contains a 10 question quiz on financial statement analysis. The questions cover topics such as the purpose of financial analysis, calculating percentage changes, interpreting common size financial statements, and calculating liquidity ratios like the quick ratio using financial information provided.
Financial Statement Analysis and Valuation (ACC-556)
Quiz 1 Marks=10 Roll# Name
Mark the correct answer
1. Interpretation of Financial Statements includes:
Criticisms and Analysis Comparison and Trend Study Drawing Conclusion All the above
2. The statement wherein figures reported are converted into percentage to
some common base is known as ____________________ Index number trend analysis Year to year change analysis Common size financial statement Ratio analysis 3. Tangible assets of company increased from Rs. 83,00,000 to Rs. 10,800,000. What is the percentage of change ? 20% 25% 30% 50%
4. If sales revenue from operations of a firm are Rs. 1,20,000; cost of goods sold is Rs. 66,000 and operating expenses are Rs. 21,600, what will be the percentage of net operating income on Sales revenue from operations? 55% 45% 73% 27%
5. Which of the following is the purpose or objective of financial analysis?
To assess the profitability and efficiency of the firm To measure the liquidity and solvency of the firm To identify problems and make forecasting All the above
6. If total assets of a firm are Rs. 8,20,000 and its non-current assets are Rs. 5,90,400, what will be the percentage of current assets on total assets? 0.28% 58% 28% 72%
7. Which of the following is not a limitations of financial statement
analysis? To measure the financial strength Affected by window-dressing Do not reflect changes in price level (inflation) Lack of Qualitative Analysis
8. The most precise test of liquidity is
Quick ratio Current ratio Cash ratio None of the above
9. Which of the following is not a limitation of ratio analysis?
False and misleading results It ignores qualitative factors It is affected by personal judgement of the analyst. It cannot be used in forecasting.
10. By Using the above information,
Particulars $ Cash 10,000 Account receivables 30,000 Inventory 80,000 Prepaid insurance 6,000 Long term assets 200,000 Accounts payable 30,000 Notes payables (in 10 months) 25,000 Wages payable 5,000 Long term liabilities 70,000 Stockholder’s Equity 196,000 The company's quick ratio is 0.7 : 1 1 : 0.2 2.0 : 1 1 : 0.7
