MBA 1st Salam University

What is Financial Analysis

• It examines the financial health of the organisation.

• Financial Analysis damages the financial health of the organisation.

• All of them.

Financial Analysis Techniques are

• Ratio Analysis

  Trend Analysis Horizontal Analysis

  Z-Score Analysis

• Ratio Analysis

  Horizontal and Vertical Analysis Cash Flow Analysis

• Ratio Analysis

  Trend Analysis Horizontal and Vertical Analysis Cash Flow Analysis

  Z-Score Analysis

• None of them

Assets examples are

• Capital, Net Profit, Dividends, Drawings.

• Account Payable

  , Salary Payable, Creditors

• Cash, Account Receivables

  Inventories, Prepaid Expenses, Building, Furniture, Car

Types of Ratio Analysis are

• Liquidity Ratio

  Profitability Ratio

  Solvency Ratio

  Efficiency Ratio

• Liquidity Ratio

  Profitability Ratio

  Solvency Ratio

• Liquidity Ratio

  Profitability Ratio

  Efficiency Ratio

If total Current Assets are AFN. 4000 and total current liabilities are 6000 so calculate the Current Ratio and select the right answer.

• 0.8

• 0.67

• 1.8

If the sales are AFN. 8000, BRT 4%, COGS 1000 so calculate Gross Profit Margin.

• 86%

• 90%

• 87.5%

Three statements model is

• Income Statement, Ledger and Balance Sheet.

• Statement of Financial Performance, Statement of Financial Position and Cash Flow Statement.

• Journal, Ledger, and Trial Balance

The main activities of Cash flow Statement are

• Direct and Indirect Method

• Operating Activities

  HR Activities

  Procurement Activities

• Operating Activities

  Investing Activities

  Financing Activities

Suppose that Net Profit (AFN) is 5000, Depreciation 500, Debtors (3000), Creditors (1000), Inventory 2000, Prepaid expenses 500, tax payable 200, cash 9000, and rent payable 50. You are required to calculate Operating Cash Flow (Indirect Method) and select the right answer.

• 6000

• 5250

• 15000

Z-Score Analysis is used to check

• Fraud of the company

• Risk of the bankruptcy

• None of them.