Top 80+ Solved Analysis & interpretation of financial statement MCQ Questions Answer
Q. Turnover ratio is also known as .
a. activity ratios.
b. solvency ratios.
c. liquidity ratios.
d. profitability ratios.
Q. Inventory or stock turnover ratio is also called .
a. stock velocity ratio.
b. debtors velocity ratio.
c. creditors velocity ratio.
d. working capital turnover ratio.
Q. Which ratio is calculated to ascertain the efficiency of inventory managementin terms of capital investment?
a. stock velocity ratio.
b. debtors velocity ratio.
c. creditors velocity ratio.
d. working capital turnover ratio.
Q. The ratio which measures the relationship between the cost of goods sold andthe amount of average inventory is
a. stock turnover ratio.
b. debtors velocity ratio.
c. creditors velocity ratio.
d. working capital turnover ratio.
Q. Sales – Gross Profit = .
a. net profit.
b. administrative expenses.
c. cost of production.
d. cost of goods sol
Q. Opening stock + purchases + direct expenses – closing stock =
a. net profit.
b. cost of production
c. administrative expenses.
d. cost of goods sold
Q. Debtors turnover ratio is also called .
a. stock turnover ratio.
b. debtors velocity ratio.
c. creditors velocity ratio.
d. working capital turnover ratio
Q. Creditors turnover ratio is also called .
a. stock turnover ratio.
b. debtors velocity ratio.
c. accounts payables ratio.
d. working capital turnover ratio.
Q. Which of the following shows details and results of the company's profitrelated activities for a period of time?
a. balance sheet
b. income statement
c. statement of cash flows
d. statement of financial position
Q. Which of the following financial statements is also known as a statement offinancial position?
a. balance sheet
b. statement of cash flows
c. income statement
d. none of the above
Q. Which of the following are techniques, tools or methods of analysis andinterpretation of financial statements?
a. ratio analysis
b. average analysis
c. trend analysis
d. all of the above
Q. Which of the following is NOT a key ratio in the prediction of bankruptcy asdeveloped by Edward Altman?
a. debt to equity
b. current ratio
c. retained earnings as a percent of total assets
d. total assets
Q. _______________ ratios measure the ability of a firm to earn an adequatereturn on sales, total assets and invested capital.
a. asset utilization
b. liquidity
c. profitability
d. debt utilization
Q. The ________ ratios help determines the degree of financial risk and earningsvolatility present in a firm.
a. profitability
b. asset utilization
c. liquidity
d. none of the above.