Tools Of Financial Analysis Accounting Ratios CBSE Questions & Answers

Tools Of Financial Analysis Accounting Ratios

This is Accountancy class 12 Tools of Financial Analysis Accounting Ratios CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
While preparing Statement of Profit and Loss , net sales is Recorded as :
  • A
    Other Expenses
  • B
    Finance Cost
  • C
    Other income
  • D
    Revenue from operations
    Correct
2
Salaries and wages are shown under :
  • A
    Cost of material consumed
  • B
    Other Expenses
  • C
    Finance Cost
  • D
    Employee benefit expense
    Correct
3
Bad debts are shown under :
  • A
    Finance Cost
  • B
    Other expenses
    Correct
  • C
    Cost of material consumed
  • D
    Other income
4
Loss on sale of investment is:
  • A
    Other expenses
    Correct
  • B
    Amortisation Expense
  • C
    Depreciation
  • D
    Cost of material consumed
5
Rent received is shown under:
  • A
    Finance Cost
  • B
    Other income
    Correct
  • C
    Revenue from operations
  • D
    Material consumed
6
An ideal Current Ratio is :
  • A
    it is 2 : 1
    Correct
  • B
    it is 1 : 1
  • C
    it is 3 : 1
  • D
    it is 4 : 1
7
Liquid Ratio is also known as :
  • A
    Acid Test Ratio
    Correct
  • B
    Debt Equity Ratio
  • C
    Gross Profit Ratio
  • D
    Current Ratio
8
Quick Assets do not include:
  • A
    Bank
  • B
    Inventories
    Correct
  • C
    Cash
  • D
    B/R
9
Low ?Working Capital Turnover Ratio? indicates:
  • A
    There is no working capital
  • B
    Under-utilization of working capital
    Correct
  • C
    No use of working capital
  • D
    Over-utilization of working capital
10
Deferred Tax Asset is treated as:
  • A
    Fictitious Assets
    Correct
  • B
    Liquid Assets
  • C
    Fixed Assets
  • D
    Current Assets
11
Payment of outstanding liabilities will:
  • A
    None of these
  • B
    Reduce total current assets
    Correct
  • C
    Both
  • D
    Reduce current liabilities
12
Financial statement analysis is a ___________ of business transactions
  • A
    None of these
  • B
    Post Mortem
    Correct
  • C
    Trend
  • D
    Record
13
Financial statement analysis is of two types i.e. _________
  • A
    Direct and Indirect Analysis
  • B
    Horizontal and Vertical Analysis
  • C
    External and Internal Analysis
    Correct
  • D
    Ratio analysis and Fictitious Assets analysis
14
External analysis is concerned with __________
  • A
    Financial Institutions
  • B
    Government
  • C
    Creditors
  • D
    All of these
    Correct
15
Which of the following is not a Quick Asset_______
  • A
    Trade Receivables
  • B
    Cheques in hand
  • C
    Loose Tools
    Correct
  • D
    Bank Balance