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Financial Analysis

Financial analysis

25 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

Dividend coverage measures the ability of a firm

  1. to pay dividend on preference shares.
  2. to pay long term loan.
  3. to pay current liability.
  4. to pay income tax.
Question 2 Multiple Choice (Single Answer)

Trading on equity is calculated by

  1. operating ratio
  2. expenses ratio
  3. capital gearing ratio
  4. quick ratio
Question 3 Multiple Choice (Single Answer)

Goodwill appears in the balance sheet only when company has

  1. ignored it
  2. accepted it
  3. thought about it
  4. paid for it
Question 4 Multiple Choice (Single Answer)

Operating Efficiency is calculated by

  1. operating ratio only
  2. expenses ratio only
  3. current ratio only
  4. operating and expenses ratio
Question 5 Multiple Choice (Single Answer)

Current assets should be ______ .

  1. twice the current liability
  2. equal to current liability
  3. less than current liability
  4. none of the above
Question 6 Multiple Choice (Single Answer)

Short term financial solvency is calculated by

  1. Current Ratio
  2. Fixed asset Ratio
  3. Liquidity Ratio
  4. Current and Liquid Ratio
Question 7 Multiple Choice (Single Answer)

Gross profit ratio and Net Profit ratio is use to calculate

  1. dividends
  2. immediate Solvency
  3. short term financial Solvency
  4. dividends and immediate solvency
Question 8 Multiple Choice (Single Answer)

Fixed Assets to Net Worth ratio is calculated as

  1. Fixed Assets / Net Worth
  2. Net Worth / Fixed Assets
  3. Current Assets / Net Worth
  4. Current Assets / Fixed Assets
Question 9 Multiple Choice (Single Answer)

Balance Sheet is used to analyse

  1. Fixed Assets
  2. Current Assets
  3. Current assets and Fixed assets
  4. Overall financial position for a fixed period at a given point of time
Question 10 Multiple Choice (Single Answer)

What are the main types of shares in the share market?

  1. Preference shares and debentures
  2. Preference shares and equity shares
  3. Preference shares only
  4. Equity shares only
Question 11 Multiple Choice (Single Answer)

Accounting is used in a company

  1. to record financial activity
  2. to keep creditor records only
  3. to keep debtors records only
  4. to keep cash records only
Question 12 Multiple Choice (Single Answer)

Sale Ratio is calculated as

  1. Sale to Current Assets = Sales : Fixed Assets.
  2. Sale to Fixed Assets = Sale : Fixed Assets.
  3. Sale to Liquid Assets = Sale : Fixed Assets.
  4. Sale to Fixed Assets = Sale : Current Assets.
Question 13 Multiple Choice (Single Answer)

In the accounting system, B/S is also known as

  1. Broker Stock
  2. Best System
  3. Balance Sheet
  4. Before System
Question 14 Multiple Choice (Single Answer)

Direct expenses mean

  1. office expenses
  2. expenses on Current Assets
  3. expenses on Fixed Assets
  4. expenses on Production of Goods
Question 15 Multiple Choice (Single Answer)

Breakeven Point indicates

  1. High Profit
  2. Low Profit
  3. Loss
  4. No Profit and No Loss
Question 16 Multiple Choice (Single Answer)

Generator Running Expenses come under

  1. Indirect Expenses
  2. Direct Expenses
  3. Office Expenses
  4. Indirect and Office Expenses
Question 17 Multiple Choice (Single Answer)

DCF is known in Accounting as

  1. Discounted Cash Flow
  2. Demand Cash Flow
  3. Demand Current Flow
  4. Discounted Current Fund
Question 18 Multiple Choice (Single Answer)

What is the type of Electricity Expenses in Accounting?

  1. Direct Expenses
  2. Indirect Expenses
  3. Direct And Indirect Expenses
  4. None of these
Question 19 Multiple Choice (Single Answer)

Earning yield is measured by

  1. Earnings Per Share / Market Price per Share
  2. Earnings on All Shares / Actual Price per Share
  3. Earnings on All Shares / Market Price per Share
  4. Earning Per Share / Actual Price per Share
Question 20 Multiple Choice (Single Answer)

Equity Ratio, Debt Ratio, Debt Equity Ratio, Shareholder Equity Ratio, all these ratios are used to compute

  1. Long Term Financial Solvency
  2. Short Term Financial Solvency
  3. Capital Gearing Ratio
  4. Immediate Solvency
Question 21 Multiple Choice (Single Answer)

On which side of the balance sheet does Bank Balance come?

  1. Liability Side
  2. Assets Side
  3. In P and L Account
  4. In Trading Account
Question 22 Multiple Choice (Single Answer)

Consumable material purchase comes under

  1. Indirect Expenses
  2. Office Expenses
  3. Direct Expenses
  4. Fixed Assets Expenses
Question 23 Multiple Choice (Single Answer)

On which side of the balance sheet does equity share capital come?

  1. Liability Side
  2. Assets Side
  3. Comes in P and L Account
  4. Comes in Trading Account
Question 24 Multiple Choice (Single Answer)

Stock is a type of

  1. Current Asset for a company
  2. Fixed Asset for a company
  3. Liability for a company
  4. Loss for a company
Question 25 Multiple Choice (Single Answer)

Which kinds of ratios are helpful for a manager for control and Management in a company?

  1. Current Ratio
  2. Quick Ratio
  3. Stock Turnover Ratio
  4. All Concern Ratio
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