Commerce  >  Accountancy Practice Tests: CUET Preparation  >  Test: Financial Statements And Their Analysis - 2 Download as PDF

Test: Financial Statements And Their Analysis - 2


Test Description

20 Questions MCQ Test Accountancy Practice Tests: CUET Preparation | Test: Financial Statements And Their Analysis - 2

Test: Financial Statements And Their Analysis - 2 for Commerce 2022 is part of Accountancy Practice Tests: CUET Preparation preparation. The Test: Financial Statements And Their Analysis - 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Financial Statements And Their Analysis - 2 MCQs are made for Commerce 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Financial Statements And Their Analysis - 2 below.
Solutions of Test: Financial Statements And Their Analysis - 2 questions in English are available as part of our Accountancy Practice Tests: CUET Preparation for Commerce & Test: Financial Statements And Their Analysis - 2 solutions in Hindi for Accountancy Practice Tests: CUET Preparation course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Financial Statements And Their Analysis - 2 | 20 questions in 20 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Accountancy Practice Tests: CUET Preparation for Commerce Exam | Download free PDF with solutions
1 Crore+ students have signed up on EduRev. Have you?
Test: Financial Statements And Their Analysis - 2 - Question 1

Which of the following is a fixed intangible asset?

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 1

Titles and Mastheads are shown under the heading of Intangible assets.

Test: Financial Statements And Their Analysis - 2 - Question 2

Which section of the Companies Act requires that Balance Sheet is to be prepared in the prescribed form? 

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 2

1. Section 129 of companies act 2013, provides for preparation of financial statements. 
2. 2(40) to include balance sheet, profit and loss account/income and expenditure account, cash flow statement, statement of changes in equity and any explanatory note annexed to the above.

Test: Financial Statements And Their Analysis - 2 - Question 3

Computer software is shown under the __________

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 3

Computer software is an intangible asset. It shown under the heading of Fixed Assets and sub heading Intangible Assets.

Test: Financial Statements And Their Analysis - 2 - Question 4

Prepaid expenses are shown under____________

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 4

Prepaid expenses are those expenses which paid in advance by the firm. These expenses are shown under other current assets.

Test: Financial Statements And Their Analysis - 2 - Question 5

Work in progress is shown under____________

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 5

Work in progress is shown under the heading of current assets and sub heading Inventories. But capital work in progress is shown under the fixed assets.

Test: Financial Statements And Their Analysis - 2 - Question 6

Which of the following items appear in the Balance sheet

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 6

Stores and spares comes in balance sheet under the heading Inventories. Following items do not take place in Balance Sheet:
•Sales
•Purchase
•Expenses

Test: Financial Statements And Their Analysis - 2 - Question 7

Which of the following items appear in the Statement of Profit and Loss

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 7

Sales appear in the Statement of Profit and Loss and the following items are shown in the balance sheet:
•Creditors
•Goodwill 
•Trade Payables

Test: Financial Statements And Their Analysis - 2 - Question 8

The information available from the Analysis, serves which of the following sections

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 8

Information available from the analysis of financial statement will serve the following:
•Potential Investors
•Economist and Researchers 
•Stock Exchange

Test: Financial Statements And Their Analysis - 2 - Question 9

When analysis is made on the basis of Published statements, reports and information it is known as…..

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 9

When analysis is made on the basis of Published statements, reports and information it is known as External Analysis.

Test: Financial Statements And Their Analysis - 2 - Question 10

Who is interested in the analysis of financial statement?

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 10

Following parties are interested in the Financial statement analysis: 
Creditors
Government
Investors

Test: Financial Statements And Their Analysis - 2 - Question 11

The Real object of Analysis of Financial Statement is …………

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 11

The main objective of analysis of financial statement is to measure the financial strength of the firm.

Test: Financial Statements And Their Analysis - 2 - Question 12

Following are the limitations of financial analysis except

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 12

Following are the limitations of financial statement analysis: 
•Don't reflect changes in price level.
•Affected by the personal ability and bias of the Analyst
•Single years' Analysis of financial statement have limited use.

Test: Financial Statements And Their Analysis - 2 - Question 13

When single set of statements of two firms is compared, it is known as …….

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 13

When single set of statements of two firms is compared, it is known as Cross Sectional Analysis.

Test: Financial Statements And Their Analysis - 2 - Question 14

Analysis of Financial statements suffered from the limitation of window dressing which means….

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 14

Window dressing is the limitation of accounting which is directly concerned with: 
hide some vital information
show items at incorrect value to portray better profitability
may overvalue closing stock to show higher profits

Test: Financial Statements And Their Analysis - 2 - Question 15

Shareholders are interested in the analysis of financial statement because….

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 15

Shareholders are interested in the analysis of financial statement because they want to judge the present and future earning capacity of the business.

Test: Financial Statements And Their Analysis - 2 - Question 16

Horizontal Analysis is:

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 16

Horizontal analysis is a time series analysis because it shows comparison of financial data for several years.

Test: Financial Statements And Their Analysis - 2 - Question 17

Comparative Financial Statement is an example of

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 17

Comparative financial statement is an example of Horizontal analysis because it requires comparative financial statements of two or more accounting periods.

Test: Financial Statements And Their Analysis - 2 - Question 18

Interpretation of accounts is the 

Test: Financial Statements And Their Analysis - 2 - Question 19

Analysis conducted by the Investors and Creditors is known as:

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 19

Analysis conducted by the Investors and Creditors is known as External Analysis because they both are treated as outsiders.

Test: Financial Statements And Their Analysis - 2 - Question 20

It is a point where total of sales is exactly equal to the total of cost to the total of cost of sales

Detailed Solution for Test: Financial Statements And Their Analysis - 2 - Question 20

Break-even point is a point where total of sales is exactly equal to the total of cost to the total of cost of sales.

Use Code STAYHOME200 and get INR 200 additional OFF
Use Coupon Code
Information about Test: Financial Statements And Their Analysis - 2 Page
In this test you can find the Exam questions for Test: Financial Statements And Their Analysis - 2 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Financial Statements And Their Analysis - 2, EduRev gives you an ample number of Online tests for practice