Top 250+ Solved Analysis of Financial Statements MCQ Questions Answer
Q. Which of the following options is not recorded in the Balance sheet?
a. cash
b. rent expenses
c. building
d. goodwill
Q. Which of the given area is NOT addressed by Business Finance?
a. financing
b. investing
c. managing day today expenses
d. none of the given options
Q. Which of the following is measured by profit margin?
a. operating efficiency
b. asset use efficiency
c. financial policy
d. dividend policy
Q. Business Finance addresses which of the following?
a. capital budgeting
b. capital structure
c. working capital management
d. all of the given options
Q. Finance is vital for which of the following business activity (activities)?
a. marketing research
b. product pricing
c. design of marketing and distribution channels
d. all of the given options
Q. Which of the following refers to the difference between the sale price and cost of inventory?
a. net loss
b. net worth
c. markup
d. markdown
Q. Who of the following make a broader use of accounting information?
a. accountants
b. financial analysts
c. auditors
d. marketers
Q. Which of the following statement is considered as the accountant’s snapshot of firm’s accounting valueas of a particular date?
a. income statement
b. balance sheet
c. cash flow statement
d. retained earning statement
Q. Balance Sheet is based upon which of the following formula?
a. assets = liabilities – stockholder’s equity
b. assets + liabilities = stockholder’s equity
c. assets + stockholder’s equity = liabilities
d. assets = liabilities + stockholder’s equity
Q. The conflict of interest between stockholders and management is known as:
a. agency problem
b. interest conflict
c. management conflict
d. agency cost
Q. When the concept of ratio is defined in respect to the item shown in thefinancial statements, it is termed as
a. Accounting ratio
b. Financial ratio
c. costing ratio
d. none of the above
Q. The relationship between two financial variables can be expressed in:
a. Pure ratio
b. Percentage
c. Rate or time
d. all the above
Q. Stock is considered as a liquid asset as anytime it can be converted into cash immediately.
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