10 questions
1. Statement of cash flows includes
A) Financing Activities
B) Operating Activities
C) Investing Activities
D) All of the Above
A
B
C
D
A company that issues stocks and bonds to raise funds results in
A) Decrease in Cash
B) Increase in Cash
C) Increase in Equity
D) Increase in Liabilities
A
B
C
D
4. The purchase value of assets over its serviceable life is categorised as
A) Appreciated Liabilities
B) Appreciated Assets
C) Depreciation
D) Appreciation
A
B
C
D
5. The basic financial statements include
A) Statement of Cash Flows
B) Statement of Retained Earnings
C) Balance Sheet and Income Statement
D) All of the Above
A
B
C
D
1. The most commonly used tools for financial analysis are :
(A) Comparative Statements
(B) Common Size Statements
(C) Accounting Ratios
(D) All of the above
A
B
C
D
Which one of the following items is not a method/tool of analysis of financial statements?
(A) Trend Analysis
(B) Statement of Affairs
(C) Cash Flow Statement
(D) Comparative Statements
A
B
C
D
Main objective of Common Size statement is :
(A) To present the changes in various items
(B) To provide for a common base for comparison
(C) To establish relationship between various items
(D) All of the Above
A
B
C
D
In the Balance Sheet of a Common Size Statement:
(A) Figure of share capital is assumed to be 100
(B) Figure of current liabilities is assumed to be 100
(C) Figure of fixed assets is assumed to be 100
(D) Figure of total assets is assumed to be 100
A
B
C
D
A and B are partners in a business sharing profits and losses in the ratio of 7 : 3 respectively. They admit C as a new partner. A sacrificed 1/7th share of his profit and B sacrificed 1/3rd of his share in favour of C. The new profit sharing ratio of A, B and C will be : (C.S. Foundation, June, 2013)
(A) 3 : 1 : 1
(B) 2 : 1 : 1
(C) 2 : 2 : 1
(D) None of the above
A
B
C
D
The formula for calculating the sacrificing ratio is :
(A) New share – Old share
(B) Old share – New share
(C) Old Ratio – Gaining Ratio
A
B
C