Top 150+ Solved Accounting for Managerial Decisions MCQ Questions Answer
Q. Vertical analysis is also known as ------------------
a. Dynamic analysis
b. Static analysis
c. External nalysis
d. Internal analysis
Q. The statement prepared to disclose accounting information are known as-----
a. Comparative statements
b. Common size statements
c. Financial statements
d. None of the above
Q. ------------- gives a diagnosis of the profitability and financial position
a. Analysis of financial statements
b. Preparation of financial statements
c. Construction of statements
d. None of the above
Q. ------------------------ helps in drawing inferences of conclusions
a. Analysis
b. Interpretation
c. Comparison
d. None of the above
Q. ---------------- establishes the relationship of different individual items which same common items
a. Common size statements
b. Comparative statements
c. Trend analysis
d. Comparative Income Statement
Q. Under ------------------------ each item of expenses taken as a percentage on net sales
a. Comparative income statement
b. Comparative balance sheet
c. Common size Balance sheet
d. Common size Income Statement
Q. ----------- helps to disclose financial position
a. Trial Balance
b. Profit and Loss Account
c. Balance sheet
d. Income Statement
Q. Disclose accounting information
a. Balance sheet
b. Trading account
c. Profit and Loss Account
d. Financial statements
Q. Afford full diagnosis of the profitability and financial position
a. Preparation of Profit and Loss Account
b. Balance Sheet
c. Final Accounts
d. Analysis of financial statements
Q. Study of the trend of the same items of two or more balance sheets
a. Common size Profit and Loss A/C
b. Common size balance sheet
c. Comparative Income statement
d. Comparative Balance Sheet
Q. Expressed as a percentage of each asset to total
a. Common size P/L A/C
b. Common size Balance Sheet
c. Comparative Income Statement
d. Trend analysis
Q. Ratios of different items for various periods are calculated and compared
a. Common size
b. Comparative
c. Trend analysis
d. Ratio analysis
Q. Yard stick which measures relationship between two variables
a. Financial statements
b. Ratio
c. Fund Flow analysis
d. Cash flow analysis
Q. The ratio which depicts the relationship between two items,one of which is drawn from the BalanceSheet and the other from the revenue account
a. Current ratio
b. Equity Ratio
c. Net Profit ratio
d. Debtors Turn over Ratio
Q. The ratio of liquid asset to current liabilities
a. Quick ratio
b. Current ratio
c. Absolute liquid ratio
d. Combined ratio