Top 250+ Solved Analysis of Financial Statements MCQ Questions Answer
Q. Reliability of ratios depend upon the reliability of financial data.
a. true
b. false
c. only a
d. both a and b.
Q. Ratio analysis ensures effective cost control.
a. true
b. false
c. none of the above
d. may be both
Q. The ratios which reveal the final result of the managerial policies and performance 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.
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.