Explore Exams
Login Signup
Sign in Open App
Commerce Exam  >  Commerce Test  >  Accountancy Class 12  >  Test: Tools Of Financial Analysis - 1 - Commerce MCQ

Tools Of Financial Analysis - 1 - Free MCQ Practice Test with solutions,


MCQ Practice Test & Solutions: Test: Tools Of Financial Analysis - 1 (10 Questions)

You can prepare effectively for Commerce Accountancy Class 12 with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Tools Of Financial Analysis - 1". These 10 questions have been designed by the experts with the latest curriculum of Commerce 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

Sign up on EduRev for free to attempt this test and track your preparation progress.

Test: Tools Of Financial Analysis - 1 - Question 1
Save

While preparing Statement of Profit and Loss , net sales is Recorded as:

Detailed Solution: Question 1

A Profit and Loss (P & L) statement measures a company's sales and expenses during a specified period of time. The function of a P & L statement is to total all sources of revenue and subtract all expenses related to the revenue. It shows a company's financial progress during the time period being examined.

Test: Tools Of Financial Analysis - 1 - Question 2
Save

While preparing statement of P/L, salaries and wages are shown under:

Detailed Solution: Question 2

Salaries and wages are shown under employee benefit expense while preparing statement of P/L.

Clear all your doubts with EduRev
Test: Tools Of Financial Analysis - 1 - Question 3
Save

Vinod Limited takes loan from HDFC Bank of Rs.25 Lakhs which is to be paid in 15 years. Where will you show this loan amount in balance sheet?

Detailed Solution: Question 3

Loan taken from which is to be paid in 15 years is a long term borrowing.

Test: Tools Of Financial Analysis - 1 - Question 4
Save

Loss on sale of investment is:

Detailed Solution: Question 4

While preparing Statement of Profit and Loss, loss on sale investment is shown under the head other expenses.

Test: Tools Of Financial Analysis - 1 - Question 5
Save

Rent received is shown under:

Detailed Solution: Question 5

Rent received is shown as other income and it is added to the revenue from operations to find out the total revenue.

Test: Tools Of Financial Analysis - 1 - Question 6
Save

An ideal Current Ratio is:

Detailed Solution: Question 6

An ideal current ratio is 2:1. It means a business must try to maintain its current assets twice of current liabilities.

Test: Tools Of Financial Analysis - 1 - Question 7
Save

Liquid Ratio is also known as:

Detailed Solution: Question 7

Liquid Ratio is also known as 'acid test ratio' which helps in assessing the short term liquidity position of the firm.

Test: Tools Of Financial Analysis - 1 - Question 8
Save

Quick Assets do not include:

Detailed Solution: Question 8

The correct option is B.

  • Quick assets are any assets that can be converted into cash on short notice.
  • These assets are a subset of the current assets classification, for they do not include inventory because it can take an excess amount of time to convert into cash.
  • Since it may be difficult to convert them into cash within a reasonable period of time, they are not a part of quick assets.

Test: Tools Of Financial Analysis - 1 - Question 9
Save

Low ‘Working Capital Turnover Ratio’ indicates:

Detailed Solution: Question 9

Low working capital turnover ratio indicates that the working capital of business is under-utilized. It means firm is not using its working capital effectively and efficiently.

Test: Tools Of Financial Analysis - 1 - Question 10
Save

Deferred Tax Asset is treated as:

Detailed Solution: Question 10

Deferred tax asset is treated as a fictitious asset because it doesn’t play any role in the firm. It is just an asset by name which cannot be realized or sold.

41 videos|227 docs|37 tests
Join Course
Information about Test: Tools Of Financial Analysis - 1 Page
In this test you can find the Exam questions for Test: Tools Of Financial Analysis - 1 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Tools Of Financial Analysis - 1, EduRev gives you an ample number of Online tests for practice
41 videos|227 docs|37 tests
Join Course
Download as PDF
;

About this Commerce Practice Test

This test contains 10 MCQs on Tools Of Financial Analysis - 1 with detailed solutions for each question. It is part of the Accountancy Class 12 course on EduRev, designed to align with the current Commerce syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

Explore more Commerce Study Resources

If you found this Tools Of Financial Analysis - 1 MCQ Test helpful, you can further enhance your Commerce preparation with in-depth courses on EduRev, for all the subjects and topics available in Accountancy Class 12 course. The course offers:
  • Video Lectures: covering all the topics of Accountancy Class 12
  • Notes for Revision: offering revision notes, important questions, summaries, flashcards, cheatsheets & more for Commerce preparation
  • MCQ Test: variety of questions as per the pattern of Commerce exam
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup