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Test: Tools Of Financial Analysis - 2 - Commerce MCQ


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20 Questions MCQ Test Accountancy Class 12 - Test: Tools Of Financial Analysis - 2

Test: Tools Of Financial Analysis - 2 for Commerce 2024 is part of Accountancy Class 12 preparation. The Test: Tools Of Financial Analysis - 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Tools Of Financial Analysis - 2 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Tools Of Financial Analysis - 2 below.
Solutions of Test: Tools Of Financial Analysis - 2 questions in English are available as part of our Accountancy Class 12 for Commerce & Test: Tools Of Financial Analysis - 2 solutions in Hindi for Accountancy Class 12 course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Tools Of Financial Analysis - 2 | 20 questions in 20 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Accountancy Class 12 for Commerce Exam | Download free PDF with solutions
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Test: Tools Of Financial Analysis - 2 - Question 1

Comparison of financial statements highlights the trend of the _________ of the business.

Test: Tools Of Financial Analysis - 2 - Question 2

Accounting Ratio is

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 2

Accounting Ratio is also called financial ratios provide a way of expressing the relationship between one accounting data point and another which is intended to provide a useful comparison.

Test: Tools Of Financial Analysis - 2 - Question 3

Financial statement analysis is of two types i.e. _________

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 3

Financial statement analysis is of two types i.e. External and internal analysis. External analysis is concerned with comparing business with other firm.

Test: Tools Of Financial Analysis - 2 - Question 4

External analysis is concerned with __________

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 4

External analysis is concerned with:
Creditors
Government
Financial Institutions

Test: Tools Of Financial Analysis - 2 - Question 5

Which of the following is not a Quick Asset_______

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 5

Following are the quick assets except Loose Tools:
Trade Receivables
Cheques in hand
Bank Balance

Test: Tools Of Financial Analysis - 2 - Question 6

Common Size financial statement is ---------------

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 6

Common Size financial statement is Vertical Analysis of financial statements. It involves amount of each individual item of balance sheet and statement of profit and loss.

Test: Tools Of Financial Analysis - 2 - Question 7

Accounting Ratio is

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 7

Accounting Ratio is arithmetical relationship between two accounting variable. It is a mathematical expression of accounting figures in the form of percentage and time.

Test: Tools Of Financial Analysis - 2 - Question 8

_____A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 8

Ratio Analysis is a tool used by individuals to conduct a quantitative analysis of information in a company's financial statements.

Test: Tools Of Financial Analysis - 2 - Question 9

Accounting Ratios can be expressed in ….

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 9

Accounting Ratios can be expressed in:
•Percentage
•Fraction
•Times

Test: Tools Of Financial Analysis - 2 - Question 10

If we deduct current liabilities from current assets, we get_________

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 10

Formula of Calculating Working Capital: Working Capital = Current Assets – Current Liabilities

Test: Tools Of Financial Analysis - 2 - Question 11

Which Ratio shows the relationship between current assets with current liabilities

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 11

Current Ratio shows relationship between current assets and current liabilities.

Test: Tools Of Financial Analysis - 2 - Question 12

Ideal Liquid ratio is

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 12

Ideal liquid ratio is 1:1 i.e. Liquid assets should be equal to the current liabilities. In other words, a firm is able to pay its current liabilities.

Test: Tools Of Financial Analysis - 2 - Question 13

Which of the following is a liquidity ratio?

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 13

Quick Ratio is also known as liquid ratio. Formula: Liquid Assets/ Current Liabilities

Test: Tools Of Financial Analysis - 2 - Question 14

The formula of Debt equity ratio is -------

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 14

Formula of Debt Equity Ratio is:
Formula: Debt/Equity
Debt means long term borrowings and Equity means shareholders’ funds.

Test: Tools Of Financial Analysis - 2 - Question 15

Followings are the solvency ratio except

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 15

Following ratios are solvency ratios except Quick ratio:
Proprietary Ratio
Total Assets to Debt Ratio
Debt equity ratio

Test: Tools Of Financial Analysis - 2 - Question 16

Followings are the solvency ratio except

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 16

Following ratios are solvency ratios except Quick ratio:
Proprietary Ratio
Total Assets to Debt Ratio
Debt equity ratio

Test: Tools Of Financial Analysis - 2 - Question 17

Which of the following is not included in quick assets

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 17

Quick assets do not include inventories. Stores and spares is the part of inventories.

Test: Tools Of Financial Analysis - 2 - Question 18

The main purpose of activities ratios is --------

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 18

Activity ratio is always known as performance or turnover ratio. The main purpose of this ratio is to know that how effectively the resources have been used.

Test: Tools Of Financial Analysis - 2 - Question 19

INVENTORY TURNOVER RATIO is also called as

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 19

Inventory turnover ratio is also known as stock turnover ratio. Inventory is wider term whereas stock is a narrow term.

Test: Tools Of Financial Analysis - 2 - Question 20

Which of the following is not part of shareholders’ funds?

Detailed Solution for Test: Tools Of Financial Analysis - 2 - Question 20

Following items are part of shareholders’ funds except Proposed Dividend:
Share Capital
General Reserve
Balance i.e. Surplus in Statement of P/L

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