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Analysis of Financial Management

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Interpretation means————-data.

a)

Explaining

b)

Entering data

c)

sharing of data

d)

None

e)

Threat

2.

Analysis simply means———data.

a)

Complexing data

b)

Simplification

c)

Hiding data

d)

None

3.

Comparative analysis is also known as—————Analysis.

a)

Horizontal

b)

Vertical

c)

Parallel

d)

None

4.

Common size analysis is also known as————–Analysis

a)

Vertical

b)

Horizontal

c)

Parallel

d)

None

5.

The analysis of actual movement of money inflow and outflow in an organisation is called

a)

Cash Flow

b)

Fund flow

c)

Capital Flow

d)

No flow

6.

The financial statements of a business enterprise include:

a)

Profit and loss account

b)

Balance sheet

c)

Cash flow statement

d)

All the above

7.

An Annual Report is issued by a company to its:

a)

Directors

b)

Shareholders

c)

Auditors

d)

Management

8.

The financial statements of a business enterprise include funds flow statement.

a)

True

b)

False

c)

i don't know

9.

Financial analysis is used only by the creditors.

a)

True

b)

False

c)

don't know

10.

Limitation of financial analysis is

a)

Dressing

b)

window

c)

Window Dressing

d)

None

11.

Feature of financial analysis is to present the data contained in financial statements

a)

Easy form

b)

Convenient and rational groups

c)

Comparable form

d)

All of the Above

12.

Which analysis is considered as dynamic :

a)

Horizontal Analysis

b)

Vertical Analysis

c)

Internal Analysis

d)

External Analysis

13.

Which analysis is considered as static :

a)

Horizontal Analysis

b)

Vertical Analysis

c)

Internal Analysis

d)

External Analysis

14.

Which analysis is based only on one year’s data :

a)

Cash Flow Statement

b)

Dividend Analysis

c)

Vertical Analysis

d)

Horizontal Analysis

15.

Main objective of analysis of financial statements is

a)

To know the financial strength

b)

To make a comparative study with other firms

c)

To know the efficiency of management

d)

All of the Above

16.

Analysis of Financial Statements is significant:

a)

For Creditors

b)

For Managers

c)

For Employees

d)

For all of the above

17.

Financial analysis becomes significant because it :

a)

Ignores price level changes

b)

Measures the efficiency of business

c)

Lacks qualitative analysis

d)

Is effected by personal bias

18.

When bad position of the business is tried to be depicted as good, it is known as

a)

Personal Bias

b)

Price Level Changes

c)

Window Dressing

d)

All of the Above

19.

For whom the analysis of financial statements is not significant?

a)

Investor

b)

Government

c)

Ambassador of India

d)

Company’s Employee

20.

limitation of analysis of financial statements is

a)

Affected by window dressing

b)

Difficulty in forecasting

c)

Do not reflect changes in price level

d)

All of the Above

21.

Which of the following is not a limitation of analysis of financial statements?

a)

Affected by personal bias

b)

To know the financial strength

c)

Lack of Qualitative Analysis

d)

Based on accounting concepts

22.

Financial analysis become useless because it:

a)

Measures the profitability

b)

Measures the Solvency

c)

Lacks Qualitative Analysis

d)

Makes a comparative study

23.

Main limitation of financial analysis is :

a)

To know earning capacity

b)

To know financial strength

c)

Do not reflect changes in price level

d)

Comparative study with other firms

24.

Which one of the following items is not a method/tool of analysis of financial statements?

a)

Accounting Ratio

b)

Break Even Point

c)

Statement of Receipts and Payments

d)

Fund Flow Statement

25.

Which analysis depicts the relationship between two figures

a)

Ratio Analysis

b)

Trend Analysis

c)

Cumulative figures and averages

d)

Dividend Analysis