Financial Analysis MCQ

Financial Analysis MCQ

12th Grade

20 Qs

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Financial Analysis MCQ

Financial Analysis MCQ

Assessment

Quiz

Business

12th Grade

Practice Problem

Medium

Created by

Srabani dasgupta

Used 1+ times

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20 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a Comparative Statement?

A Comparative Statement is a document that compares the prices of different products in a store.

A Comparative Statement is a financial statement that compares different line items, figures, or ratios from the same company over different periods or with other companies in the same industry.

A Comparative Statement is a financial statement that compares different line items, figures, or ratios from different industries.

A Comparative Statement is a statement that compares the weather in different cities.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is the Common Size Statement important in financial analysis?

It is not relevant in financial analysis.

It only applies to certain industries.

It facilitates standardized comparison of financial data.

It confuses financial data analysis.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the Liquidity Ratio calculated?

Total Liquid Assets * Total Current Liabilities

Total Current Assets / Total Current Liabilities

Total Liquid Assets / Total Current Liabilities

Total Liquid Assets - Total Current Liabilities

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How can you interpret a Comparative Statement?

By ignoring industry benchmarks

By analyzing only one financial statement

By comparing financial data over different periods or against other companies to analyze trends and performance.

By comparing financial data within the same period

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the advantages of using a Common Size Statement?

Standardization for easy comparison and trend analysis.

Limited comparability with industry standards

Difficulty in identifying trends

Increased complexity in financial analysis

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Name two types of Liquidity Ratios.

Profit Margin Ratio

Inventory Turnover Ratio

Debt Ratio

Current Ratio, Quick Ratio

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Define Comparative Statement in financial analysis.

Comparative Statement is used to compare physical assets only

A Comparative Statement in financial analysis compares financial data from different periods or companies to assess performance and identify trends.

Comparative Statement is not relevant in financial analysis

Comparative Statement is used to predict future financial performance

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