WorksheetsAnalysis of financial statement viva questions
Total questions: 35
Worksheet time: 18mins
How will the acid-test ratio be calculated?
Current Assets : Current Liabilities
Assets : Liabilities
Current Assets - Inventory : Current Liabilities
Current Assets + Inventory : Current Liabilities
Which from the list below is the formula to calculate the mark-up % achieved?
Net profit / Cost of sales x 100
Gross Profit / Sales x 100
Gross Profit / Cost of sales x 100
Cost of sales x 100 / 150
From the list below, which ratio calculates the solvency of a business?
Total assets : Total liabilities
Current assets : Current liabilities
Long term debt : Total Liabilities
Total assets - inventory : Total Liabilities
Which of the the following won't help you to identify the return of shareholders in a company.
EPS
DPS
NAV
ROL
How will the earnings per share (EPS) be calculated?
Profit before tax / Dividends per share
Profit before tax / no of shares in issue
Profit after tax / no of shares in issue
Profit before tax / authorized shares
Which is the category to see whether the company can meet their short term obligations.
Solvency
Profitability
Liquidity
Return
With which ratio can the risk of a company be calculated?
Debt : Equity
Current assets : Current liablities
Total assets : total liabilities
Total liabilities : Equity
Which formula represents the ROTCE correctly?
Net profit before tax + Interest expense x 100
Average shareholders equity + Loans
Net profit after tax + Interest expense x 100
Average shareholders equity + Loans
Net profit before tax + Interest expense x 100
Average shareholders equity + all liabilities
Net profit after tax x 100
Average shareholders equity + Loans
Which can't be used to calculate the return of shareholders?
Earnings per share
Dividends per share
Net asset value
Return on shareholders equity
When asked to calculate the book value of a share, which formula will be used?
Shareholders equity
Shares in issue
Net profit after tax
Shares in issue
Net before after tax
Shares in issue
Dividends paid and declared
Shares in issue
The interest rate on borrowed money is 14%.
When the return on capital employed is 16% it means...
The company is positively geared
The company is negatively geared
Loans have not been paid
The company has very little debt
Which proves that the liquidity of a company is not positive?
Debtors collection is 33 days and the Creditors payment period is 47 days.
The stock turnover rate of a clothing shop is 4 times a year.
The acid test ratio is 0,9:1
The current ratio of a fruit and veg is 8:1
From the given items which is not shown under current liabilities
Trade payables
Short-term provisions
Short-term borrowings
Inventories
Identify the item which is not a part of shareholders' funds
Share application money pending allotment
Share capital
Reserves and surplus
Money received against share warrants
If the operating cycle cannot be identified, it is assumed to be a period of
10 months
11 months
9 months
12 months
Cash and cash equivalents does not include
Cheques
Balance with banks
Bank deposits with more than 12 months maturity
Inventories
Which of the following is not a non-current asset
Fixed assets
Share capital
Long-term loans and advances
Non-current investments
The current ratio is also known as the:
Quick ratio
Working capital ratio
Cash flow ratio
Capital structure ratio
Which account is classified as an Expense?
Auto Loan
college Fund
Bank Account
Cell phone bill
Which account is classified as an Expense?
Concert Tickets
college Fund
Bank Account
Cash
Which account is classified as an Income?
Auto Loan
college Fund
Bank Account
Allowance
The financial statements of a business enterprise include:
_________________
Balance sheet
Statement of Profit and loss
Cash flow statement
All the above
Financial analysis is used only by the creditors.
True
False
State whether each of the following is True or False
In a Common size statement each item is expressed as a percentage of some common base.
True
False
State whether each of the following is True or False :
Statement of profit and loss account shows the operating performance of an enterprise for a period of time.
False
True
While preparing Common Size Statement, each item of income statement is expressed as % of
Total Income
Revenue from operation
Other Income
Profit before tax
Revenue from operation is not taken as100 in preparing common -size statement of profit and loss.
True
False
From financial statement analysis the creditors are interested to know
Liquidity
Profit
Efficiencies
Share capital
Comparative statement show the changes in
Percentages
Absolute amounts
Both (a) and (b)
Ratios
While preparing common-size balance sheet each item of balance sheet is expressed as percentage of
Non-current assets
Current assets
Non-current liabilities
Total assets
Which analysis is considered as dynamic
Horizontal analysis
Vertical analysis
Internal analysis
External analysis
