Test: Tools Of Financial Analysis - 1


10 Questions MCQ Test Accountancy Class 12 | Test: Tools Of Financial Analysis - 1


Description
This mock test of Test: Tools Of Financial Analysis - 1 for Commerce helps you for every Commerce entrance exam. This contains 10 Multiple Choice Questions for Commerce Test: Tools Of Financial Analysis - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Tools Of Financial Analysis - 1 quiz give you a good mix of easy questions and tough questions. Commerce students definitely take this Test: Tools Of Financial Analysis - 1 exercise for a better result in the exam. You can find other Test: Tools Of Financial Analysis - 1 extra questions, long questions & short questions for Commerce on EduRev as well by searching above.
QUESTION: 1

This a MCQ (Multiple Choice Question) based practice test of Chapter 9 - Tools of Financial Analysis Accounting Ratios of Accountancy of Class XII (12) for the quick revision/preparation of School Board examinations

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

Solution:

Net Sales is known as Revenue from Operations.

QUESTION: 2

While preparing Statement of P/L, Salaries and wages are shown under:

Solution:

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

QUESTION: 3

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?

Solution:

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

QUESTION: 4

Loss on sale of investment is:

Solution:

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

QUESTION: 5

Rent received is shown under:

Solution:

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

QUESTION: 6

An ideal Current Ratio is:

Solution:

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

QUESTION: 7

Liquid Ratio is also known as:

Solution:

Liquid Ratio is also known as Acid Test Ratio which helps in assessing the short term liquidity position of the firm.

QUESTION: 8

Quick Assets do not include:

Solution:

Quick Assets do not include inventories because it cannot be converted into cash quickly.

QUESTION: 9

Low ‘Working Capital Turnover Ratio’ indicates:

Solution:

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.

QUESTION: 10

Deferred Tax Asset is treated as:

Solution:

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.