All Courses
Get the App Signup / Login
Sign in Open App
Commerce Exam  >  Commerce Tests  >  Test: Tools Of Financial Analysis - 2 - Commerce MCQ

Test: Tools Of Financial Analysis - 2 - Commerce MCQ


Test Description

20 Questions MCQ Test - Test: Tools Of Financial Analysis - 2

Test: Tools Of Financial Analysis - 2 for Commerce 2024 is part of Commerce 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 course for Commerce & Test: Tools Of Financial Analysis - 2 solutions in Hindi for Commerce 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 for Commerce Exam | Download free PDF with solutions
Test: Tools Of Financial Analysis - 2 - Question 1
Save

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

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

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.

1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Tools Of Financial Analysis - 2 - Question 3
Save

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
Save

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
Save

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
Save

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
Save

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
Save

_____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
Save

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
Save

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
Save

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
Save

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
Save

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
Save

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
Save

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
Save

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
Save

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
Save

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
Save

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
Save

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

Information about Test: Tools Of Financial Analysis - 2 Page
In this test you can find the Exam questions for Test: Tools Of Financial Analysis - 2 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Tools Of Financial Analysis - 2, EduRev gives you an ample number of Online tests for practice

Top Courses for Commerce

Download as PDF

Top Courses for Commerce

Important Questions for Tools Of Financial Analysis - 2

Find all the important questions for Tools Of Financial Analysis - 2 at EduRev.Get fully prepared for Tools Of Financial Analysis - 2 with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Tools Of Financial Analysis - 2 syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Tools Of Financial Analysis - 2 resources.

Tools Of Financial Analysis - 2 MCQs with Answers

Prepare for the Tools Of Financial Analysis - 2 within the Commerce exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Tools Of Financial Analysis - 2

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Tools Of Financial Analysis - 2 with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup