1)    Working
capital is an excess of current assets over current _____.
a)    Liabilities
b)    Operating
Ratio
c)    No
of times
d)    Fixed
Assets
ANS: A
 
2)    ______
shows the period for which amount of sales remains invested in debtors.
a)    Liquid
Assets
b)    Collection
c)    Period
Long term
d)    Fixed
Assets
ANS: B
 
3)    Net
profit ratio is an indicator of _____.
a)    Turn
Over
b)    Liquidity
c)    Profitability
d)    Long
term solvency
ANS: C
 
 
4)    Current
Ratio indicates _____.
a)    Short
term solvency
b)    Long
term solvency
c)    Net
operating profit and capital employed
d)    Turn
Over
ANS: A
 
5)    Stock
working capital ratio indicates relationship between stock and ______ capital.
a)    Liquidity
b)    Working
c)    Financial
Stability
d)    Turn
Over
ANS: B
 
6)    Average
stock = Opening Stock + _____/ 2.
a)    Working
b)    Opening
stock
c)    closing
stock
d)    Fixed
Assets
ANS: C
 
7)    A
very high current ratio will
a)    Increase
profitability
b)    Decrease
profitability
c)    Not
affect profitability
d)    Same
Profitability
ANS: B
 
8)    Comparative
statement is a part of _____ analysis.
a)    Vertical
b)    Horizontal
c)    Technical
d)    Fundamental
ANS: B
 
9)    Common
size statement is a _____analysis.
a)    Horizontal
b)    Fundamental
c)    Vertical
d)    Technical
ANS: C
 
10) _____
analysis show trend in performance.
a)    Vertical
b)    Trend
c)    Horizontal
d)    Structural
ANS: B
 
11) Common
size statement is also called as _____% statement.
a)    Percentage
Statement
b)    most
common statement
c)    100
d)    Small
sized
ANS: C
 
12) In
_____ in came statement sales is considered equal to 100.
a)    Common
Size
b)    Comparative
income statement
c)    Balance
Sheet
d)    Income
statement
ANS: A
 
13) In
common size _____ capital employed is considered equal to 100.
a)    Balance
Sheet
b)    Common
size Statement
c)    Income
statement
d)    Comparative
income statement
ANS: A
 
14) In
Trend Analysis earliest year is considered as _____ year.
a)    Base
b)    Current
c)    Last
d)    None
of the above
ANS: A
 
15) Analysis
is a must for _____.
a)    Interpretation
b)    Evaluation
c)    Detemination
d)    None
of the above
ANS: A
 
16) Common
size statement is a tool of
a)    Vertical
analysis
b)    Horizontal
analysis
c)    Technical
analysis
d)    Fundamental
analysis
ANS: A
 
17) Common
size statement is also known as
a)    Percentage
statement
b)    100%
statement
c)    Most
common statement
d)    Small
sized statement.
ANS: B
 
18) In
common size income statement, the basis is
a)    Total
cost
b)    N.P
c)    G.P
d)    Sales
ANS: D
 
19) In
common size vertical Balance sheet the basis is
a)    Capital
employed
b)    Total
assets
c)    Total
liabilities
d)    Proprietor’s
fund
ANS: A
 
 
20) Comparative
statement is a tool of
a)     Vertical analysis
b)    Horizontal
analysis
c)    Structural
analysis
d)    Technical
analysis
ANS: B
 
21) Comparative
statement shows
a)    One
year’s performance
b)    Comparative
performance
c)    Financial
performance
d)    Profitability
performance
ANS: B
 
22) Increase/Decrease
is a method of preparation of
a)    common
size statement
b)    comparative
statement
c)    Income
statement
d)    Balance
sheet
ANS: B
 
23) _____
is a proportion between two figures.
a)    Ratio
b)    Percentage
c)    Percentile
d)    Sales
ANS: A
 
24) One
figure is divided by another figure to get _____ ratio.
a)    Pure
b)    Current
c)    Liquidity
d)    Sales
ANS: A
 
 
25) Turn
over ratios are expressed in _____.
a)    Ratio
b)    No
of times
c)    Percentage
d)    assets