Top 80+ Solved Analysis & interpretation of financial statement MCQ Questions Answer
Q. Proprietary ratio is a .
a. short-term solvency ratio.
b. long-term solvency ratio.
c. profitability ratio.
d. turnover ratio.
Q. Fixed assets ratio is a
a. short-term solvency ratio.
b. long-term solvency ratio.
c. profitability ratio.
d. turnover ratio.
Q. Fixed assets turnover ratio is a
a. short-term solvency ratio.
b. long-term solvency ratio.
c. profitability ratio.
d. turnover ratio.
Q. The ratio which measures the profit in relation to capital employed is known as
a. return on investment.
b. gross profit ratio.
c. operating ratio.
d. operating profit ratio.
Q. The ratio which determines the profitability from the shareholder’s point ofview is .
a. return on investment.
b. gross profit ratio.
c. return on shareholders funds.
d. operating profit ratio.
Q. Return on equity is also called
a. return on investment.
b. gross profit ratio.
c. return on shareholders funds.
d. return on net worth.
Q. Preliminary expenses is an example of
a. fixed assets.
b. current assets.
c. fictitious assets.
d. current liabilities.
Q. Prepaid expenses is an example of .
a. fixed assets.
b. current assets.
c. fictitious assets.
d. current liabilities.
Q. The ratio which is calculated to measure the productivity of total assets is
a. return on equity.
b. return on share holders funds.
c. return on total assets.
d. return on equity share holders’ funds.
Q. Liquidity ratios are expressed in
a. pure ratio form
b. percentage
c. rate or time
d. none of the above
Q. The ratio which shows the proportion of profits retained in the business out ofthe current year’s profits is
a. retained earnings ratio.
b. pay out ratio
c. earnings per share.
d. price earnings ratio.
Q. The ratio which indicates earnings per share reflected by the market price is .
a. retained earnings ratio.
b. pay out ratio.
c. earnings per share.
d. price earnings ratio.
Q. The ratio establishes the relationship between profit before interest and taxand fixed interest charges is .
a. interest cover ratio.
b. fixed dividend cover ratio.
c. debt service coverage ratio.
d. dividend yield ratio.
Q. The ratio shows the preference dividend as a proportion of profit available forshareholders is
a. interest cover ratio.
b. fixed dividend cover ratio.
c. debt service coverage ratio.
d. dividend yield ratio.
Q. The dividend is related to the market value of shares in .
a. interest cover ratio.
b. fixed dividend cover ratio.
c. debt service coverage ratio.
d. dividend yield ratio.