Top 250+ Solved Analysis of Financial Statements MCQ Questions Answer
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. 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.
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. Which ratio measures the number of times the receivables are rotated in ayear in terms of sales?
a. stock turnover ratio.
b. debtors turnover ratio.
c. creditors velocity ratio.
d. working capital turnover ratio.