Quiz on Analysis of Financial StatementResults #1. Gross Profit Ratio indicates the relationship of gross Profit to the ………………. Net Cash Net Cash Net Sales Net Sales Net Purchase Net Purchase Gross Sales Gross Sales #2. Cash payable from issue of debenture is a ……….. activity. Operating Operating Trading Trading Financial Financial Non-financial Non-financial #3. Current Ratio = ………………. /Current Liabilities Quick Assets Quick Assets Quick Liabilities Quick Liabilities Current Assets Current Assets None of these None of these #4. Liquid Assets = ……………… Current Assets + Stock Current Assets + Stock Current Assets – Stock Current Assets – Stock Current Assets – Stock + Prepaid Expenses Current Assets – Stock + Prepaid Expenses None of these None of these #5. Cost of goods sold ……………… Sales – Gross Profit Sales – Gross Profit Sales – Net Profit Sales Proceeds Sales – Net Profit Sales Proceeds Sales Proceeds Sales Proceeds None of these None of these #6. Common Size Income Statement takes ……………….. as 100. Sales Sales Purchase Purchase Total Funds Total Funds Loan Funds Loan Funds #7. Vertical Balance Sheet depicts ……………….. . Sources and Application of Funds Sources and Application of Funds Trading Profit & Loss A/c Trading Profit & Loss A/c Total Assets & Liabilities Total Assets & Liabilities Income & Expenses Income & Expenses #8. Net-Profit Ratio is equal to ……. Operating ratio Operating ratio Operating net-profit ratio Operating net-profit ratio Gross Profit Ratio Gross Profit Ratio Current Ratio Current Ratio #9. The Common Size Statement requires ………… Common base Common base journal Entries journal Entries Cash Flow Cash Flow Current Ratio Current Ratio #10. Bill Payable is ……………… Long term loan Long term loan Current Liabilities Current Liabilities Liquid Assets Liquid Assets Net Loss Net Loss #11. Generally, Current Ratio should be …………. 2 : 1 2 : 1 1 : 1 1 : 1 1 : 2 1 : 2 3 : I 3 : I #12. From financial statement analysis the creditors are specially interested to know………… Liquidity Liquidity Profits Profits Sale Sale Share Capital Share Capital #13. Quick Ratio is also called……… Acid test ratio Acid test ratio Capital gearing ratio Capital gearing ratio Combined ratio Combined ratio Operating ratio Operating ratio #14. Cash Flow statements shows cash inflow and outflow of………….. activities. Operating activities Operating activities Investing activities Investing activities Financing activities Financing activities All three activities All three activities #15. Comparative statements express changes in…………. percentage percentage ratio ratio fraction fraction none none #16. Current Ratio is useful to judge…………. solvency solvency profitability profitability stability stability durability durability #17. The methodical classification of financial statement is called…………. an interpretation an interpretation an analysis an analysis ratio ratio Profit & Loss Profit & Loss #18. Common size balance sheet takes total funds employed as…………. 100 100 200 200 50 50 150 150 Finish
