Top 150+ Solved Accounting for Managerial Decisions MCQ Questions Answer
Q. 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
Q. Vertical analysis is made to review and analyse the financial statements of -----------------accounting period.
a. One
b. Two
c. Three
d. Four
Q. 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
Q. Interpretation requires analysis and ----------------------------------
a. Comaprison
b. Determination
c. Decision Making
d. Conclusion
Q. The process of deriving conclusions from the analysis is commonly termed as ----------------
a. Analysis
b. Conclusion
c. Comparison
d. Interpretation
Q. 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
Q. External analysis is based on ------------- financial statements
a. Annual
b. Published
c. Prepared
d. Previous
Q. Financial Statements provide a summary of --------------------------
a. Accounts
b. Assets
c. Liabilities
d. Expenses
Q. When financial statements for a number of years are reviewed and analysed, the analysis is knownas ---------------------
a. Vertical nalysis
b. Internal analysis
c. Horizontal analysis
d. External analysis
Q. 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
Q. Horizontal analysis is also known as -----------------------
a. Static analysis
b. Structural analysis
c. Dynamic analysis
d. None of these
Q. Trend analysis is significant for
a. Forecasting and budgeting
b. Profit planning
c. Capital rationing
d. None of the above
Q. In trend percentage the base year is ----------------------------
a. The first year
b. Last year
c. Any year
d. Second year
Q. Comparative statements are a form of ---------------------------
a. Horizontal analysis
b. Vertical analysis
c. Parellel analysis
d. None of the above
Q. The term financial ananlysis include both --------- and interpretation
a. Comparison
b. Analysis
c. Conclusion
d. Constructions