Top 80+ Solved Analysis & interpretation of financial statement MCQ Questions Answer
Q. Stock is considered as a liquid asset as anytime it can be converted into cashimmediately.
a. yes
b. no
c. only yes
d. none of the above
Q. . Return on properties funds is also known as.
a. return on net worth
b. return on shareholders fun
c. return on the shareholders investment
d. all the above
Q. Which of the following is not included in current assets.
a. debtors
b. stock
c. cash at bank
d. cash in hand
Q. Working capital turnover ratio can be determined by :
a. ( gross profit / working capital )
b. ( cost of goods sold / net sales )
c. ( cost of goods sold / working capital)
d. none of the above
Q. Determine Working capital turnover ratio if, Current asset is Rs 1,50,000,current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.
a. 5 times
b. 6 times
c. 3 times
d. 1.5 times
Q. The ratio analysis is helpful to management in taking several decisions, but asa mechanical substitute for judgement and thinking, it is worse than useless.
a. true
b. false
c. may be false
d. both a and b
Q. Profit for the objective of calculating a ratio may be taken as
a. profit before tax but after interest
b. profit before interest &tax
c. profit after interest & tax
d. all the above
Q. If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is
a. 24%
b. 416%
c. 60%
d. none of the above
Q. The ratios which reveal the final result of the managerial policies andperformance is .
a. turnover ratios.
b. profitability ratios.
c. short term solvency ratio.
d. long term solvency ratio.
Q. Return on investment is a .
a. turnover ratios.
b. short term solvency ratio.
c. profitability ratios.
d. long term solvency ratio.
Q. Net profit ratio is a .
a. turnover ratio.
b. long term solvency ratio.
c. short term solvency ratio
d. profitability ratio.
Q. Stock turnover ratio is a .
a. turnover ratio.
b. profitability ratio.
c. short term solvency ratio.
d. long term solvency ratio.
Q. Current ratio is a
a. short-term solvency ratio.
b. long-term solvency ratio.
c. profitability ratio.
d. turnover ratio.