Top 250+ Solved Analysis of Financial Statements MCQ Questions Answer
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. Preliminary expenses is an example of .
a. fixed assets.
b. current assets.
c. fictitious assets.
d. current liabilities.
Q. The ratio which shows the proportion of profits retained in the business out of the current year’s profitsis
a. retained earnings ratio.
b. payout ratio
c. earnings per share.
d. price earnings ratio
Q. The ratio establishes the relationship between profit before interest and tax and 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 for shareholders 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.
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. The ratio which measures the relationship between the cost of goods sold and the amount of averageinventory 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. Which ratio measures the number of times the receivables are rotated in a year in terms of sales?
a. stock turnover ratio.
b. debtors turnover ratio.
c. creditors velocity ratio.
d. working capital turnover ratio.
Q. Debtors turnover ratio is also called .
a. stock turnover ratio.
b. debtors velocity ratio.
c. creditors velocity ratio.
d. working capital turnover ratio