CBSE  /  Class 12  /  Accountancy  /  Analysis of Financial Statements

  • 1. 
    In a common-size Balance Sheet, total equity and liabilities are assumed to be equal to :

  • 1,000
  • 100
  • 10
  • 1

  • 2. 
    Break-even point refers to that point where :

  • Total Costs are more than Total Sales
  • Total Costs are less than Total Sales
  • Total Costs are half of the Total Sales
  • Total Cost are equal to total sales

  • 3. 
    Payment of Income Tax is considered as :

  • Direct Expenses
  • Indirect Expenses
  • Operating Expenses
  • None of these

  • 4. 
    Vertical Analysis is also known as :

  • Fluctuation Analysis
  • Static Analysis
  • Horizontal Analysis
  • None of these

  • 5. 
    Financial analysis is useful:

  • For Investors
  • For Shareholders
  • For Debenture holders
  • All the above

  • 6. 
    Analysis of financial statements involve :

  • Trading A/c
  • Profit & Loss statement
  • Balance Sheet
  • All the above

  • 7. 
    Financial analysis is significant because it:

  • Ignores qualitative aspect
  • Judges operational efficiency
  • Suffers from the limitations of financial statements
  • It is affected by personal ability and bias of the analysis

  • 8. 
    What is shown by the Income Statement ?

  • Accuracy of books of accounts
  • Profit or loss of a certain period
  • Balance of Cash Book
  • None of these

  • 9. 
    What is shown by Balance Sheet ?

  • Accuracy of books of accounts
  • Profit or loss of a specific period
  • Financial position on a specific date
  • None of the above

  • 10. 
    Which of the following is the purpose or objective of financial analysis ?

  • To assess the current profitability of the firm
  • To measure the solvency of the firm
  • To assess the short-term and long-term liquidity position of the firm
  • All the above
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