In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to :
  • 1,000
  • 100
  • 10
  • 1
Break-even point refers to that point where :
  • Total Costs are more than Total Sales
  • Total Costs are less than Total Sales
  • Total Costs are half of the Total Sales
  • Total Cost are equal to total sales
Payment of Income Tax is considered as :
  • Direct Expenses
  • Indirect Expenses
  • Operating Expenses
  • None of these
Financial analysis is useful:
  • For Investors
  • For Shareholders
  • For Debenture holders
  • All the above
Analysis of financial statements involve :
  • Trading A/c
  • Profit & Loss statement
  • Balance Sheet
  • All the above
Financial analysis is significant because it:
  • Ignores qualitative aspect
  • Judges operational efficiency
  • Suffers from the limitations of financial statements
  • It is affected by personal ability and bias of the analysis
What is shown by the Income Statement ?
  • Accuracy of books of accounts
  • Profit or loss of a certain period
  • Balance of Cash Book
  • None of these
What is shown by Balance Sheet ?
  • Accuracy of books of accounts
  • Profit or loss of a specific period
  • Financial position on a specific date
  • None of the above
Which of the following is the purpose or objective of financial analysis ?
  • To assess the current profitability of the firm
  • To measure the solvency of the firm
  • To assess the short-term and long-term liquidity position of the firm
  • All the above
Out of the following which parties are interested in financial statements ?
  • Managers
  • Financial Institutions
  • Creditors
  • All the these
Which of the following is not a limitations of financial statement analysis ?
  • To measure the financial strength
  • Affected by window-dressing
  • Do not reflect changes in price level
  • Lack of Qualitative Analysis
Break-even Analysis shows:
  • Relationship between cost and sales
  • Relationship between production and purchases
  • Relationship between cost and revenue
  • None of these
Which of the following shows the actual financial position of n enterprise ?
  • Fund Flow
  • Balance Sheet
  • P & L A/c
  • Ratio Analysis
The financial statements of a business enterprise include:
  • Balance Sheet
  • Profit & Loss Account
  • Cash Flow Statement
  • All the above
An annual report is issued by company to its :
  • Directors
  • Auditors
  • Shareholders
  • Management
Balance Sheet provides information about financial position of the enterprise :
  • At a Point of Time
  • Over a Period of Time
  • For a Period of Time
  • None of the above
Profit & Loss Account is also called :
  • Balance Sheet
  • Income Statements
  • Operating Profit
  • Investment
Which of the following statement is correct ?
  • Assets = Liabilities + Shareholders funds
  • Assets = Total funds
  • Assets = Funds of outsiders . (d) None of the above
In which meeting of company directors report is presented ?
  • Directors Meeting
  • Annual General Meeting
  • Manager’s Meeting
  • All of the above
On the basis of process, which of the following is the type of financial analysis ?
  • Horizontal Analysis
  • Vertical Analysis
  • Ratio Analysis
  • (a) and (b) both
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