hen financial statements for a number of years are reviewed and analysed, the analysis is known as --------------------- a) Vertical nalysis b) Internal analysis c) Horizontal analysis d) External analysis

hen financial statements for a number of years are reviewed and analysed, the analysis is known  as ---------------------
a) Vertical nalysis
b) Internal analysis
c) Horizontal analysis
d) External analysis
by

1 Answer

Answer :

c) Horizontal analysis
by

Related questions

Vertical analysis is also known as ------------------ a) Dynamic analysis b) Static analysis c) External nalysis d) Internal analysis

Description : Vertical analysis is also known as ------------------ a) Dynamic analysis b) Static analysis c) External nalysis d) Internal analysis

Last Answer : b) Static analysis

When ratios are calculated from the financial statements of one year, it is known as --------------------- a) Horizontal analysis b) Vertiacal analysis c) Internal Analysis d) External analysis

Description : When ratios are calculated from the financial statements of one year, it is known as --------------------- a) Horizontal analysis b) Vertiacal analysis c) Internal Analysis d) External analysis

Last Answer : b) Vertiacal analysis

Comparative statements are a form of --------------------------- a) Horizontal analysis b) Vertical analysis c) Parellel analysis d) None of the above

Description : Comparative statements are a form of --------------------------- a) Horizontal analysis b) Vertical analysis c) Parellel analysis d) None of the above

Last Answer : a) Horizontal analysis

Vertical analysis is made to review and analyse the financial statements of -----------------accounting period. a) One B. Two C. Three D. Four

Description : Vertical analysis is made to review and analyse the financial statements of -----------------accounting period. a) One B. Two C. Three D. Four

Last Answer : a) One

External analysis is based on ------------- financial statements a) Annual b) Published c) Prepared d) Previous

Description : External analysis is based on ------------- financial statements a) Annual b) Published c) Prepared d) Previous

Last Answer : b) Published

Horizontal Analysis shows the comparison of data for several years against a chosen ---------------- year. a) Base year C. Financial year b) Previous year D. Calender year

Description : Horizontal Analysis shows the comparison of data for several years against a chosen ---------------- year. a) Base year C. Financial year b) Previous year D. Calender year

Last Answer : a) Base year

Yard stick which measures relationship between two variables a) Financial statements b) Ratio c) Fund Flow analysis d) Cash flow analysis

Description : Yard stick which measures relationship between two variables a) Financial statements b) Ratio c) Fund Flow analysis d) Cash flow analysis

Last Answer : b) Ratio

------------- gives a diagnosis of the profitability and financial position a) Analysis of financial statements b) Preparation of financial statements c) Construction of statements d) None of the above

Description : ------------- gives a diagnosis of the profitability and financial position a) Analysis of financial statements b) Preparation of financial statements c) Construction of statements d) None of the above

Last Answer : a) Analysis of financial statements

Horizontal analysis is also known as ----------------------- a) Static analysis b) Structural analysis c) Dynamic analysis d) None of these

Description : Horizontal analysis is also known as ----------------------- a) Static analysis b) Structural analysis c) Dynamic analysis d) None of these

Last Answer : c) Dynamic analysis

Comparison of financial variables of a firm over a period of time is known as-------------- a) Comparative b) Common-size c) Trend analysis d) None of the above

Description : Comparison of financial variables of a firm over a period of time is known as-------------- a) Comparative b) Common-size c) Trend analysis d) None of the above

Last Answer : c) Trend analysis

When one of the existing companies take over business of another company or companies, it is known as ........... (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction

Description : When one of the existing companies take over business of another company or companies, it is known as ........... (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction

Last Answer : (B) Revised Value

When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as .................. (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction

Description : When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as .................. (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction

Last Answer : (A) Amalgamation

In common size Balance Sheet analysis we evaluate– (A) Increase or decrease over two years is analysed (B) Only increase over two years is analysed (C) Only decrease over two years is analysed (D) All assets and liabilities are expressed in terms of percentage of total

Description : In common size Balance Sheet analysis we evaluate– (A) Increase or decrease over two years is analysed (B) Only increase over two years is analysed (C) Only decrease over two years is analysed (D) All assets and liabilities are expressed in terms of percentage of total

Last Answer : Answer: All assets and liabilities are expressed in terms of percentage of total

An essential tool of short term financial analysis a) Fund flow statement b) Statement of uses and application of funds c) Cash flow statement d) Ratio analysis

Description : An essential tool of short term financial analysis a) Fund flow statement b) Statement of uses and application of funds c) Cash flow statement d) Ratio analysis

Last Answer : c) Cash flow statement

Ratio analysis is a study of relationship among various --------------- factors in a business a) Operational b) Official c) Financial d) Others

Description : Ratio analysis is a study of relationship among various --------------- factors in a business a) Operational b) Official c) Financial d) Others

Last Answer : c) Financial

Powerful tool for analyzing financial statement is ---------- a) Trend analysis b) Ratio analysis c) Analysis d) Interpretation

Description : Powerful tool for analyzing financial statement is ---------- a) Trend analysis b) Ratio analysis c) Analysis d) Interpretation

Last Answer : b) Ratio analysis

Afford full diagnosis of the profitability and financial position a) Preparation of Profit and Loss Account b) Balance Sheet c) Final Accounts d) Analysis of financial statement

Description : Afford full diagnosis of the profitability and financial position a) Preparation of Profit and Loss Account b) Balance Sheet c) Final Accounts d) Analysis of financial statement

Last Answer : d) Analysis of financial statement

The term financial ananlysis include both --------- and interpretation a) Comparison b) Analysis c) Conclusion d) Constructions

Description : The term financial ananlysis include both --------- and interpretation a) Comparison b) Analysis c) Conclusion d) Constructions

Last Answer : b) Analysis

The statement prepared to disclose accounting information are known as----- a) Comparative statements b) Common size statements c) Financial statements d) None of the above

Description : The statement prepared to disclose accounting information are known as----- a) Comparative statements b) Common size statements c) Financial statements d) None of the above

Last Answer : c) Financial statements

When company purchases the business of another company ........ comes into existence. (A) Amalgamation (B) Absorption (C) External Reconstruction (D) Internal Reconstruction

Description : When company purchases the business of another company ........ comes into existence. (A) Amalgamation (B) Absorption (C) External Reconstruction (D) Internal Reconstruction

Last Answer : (B) Absorption

Both of the old companies will not exist in ........... (A) Internal reconstruction (B) Absorption (C) External reconstruction (D) Amalgamation

Description : Both of the old companies will not exist in ........... (A) Internal reconstruction (B) Absorption (C) External reconstruction (D) Amalgamation

Last Answer : (D) Amalgamation

An attestation engagement is one in which a CPA is engaged to: a. Assemble prospective financial statements based on the assumptions of the entity's management without expressing any Testify as an expert witness in accounting, auditing or tax matters, given certain stipulated facts. b. assurance. c. Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party. d. Provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.

Description : An attestation engagement is one in which a CPA is engaged to: a. Assemble prospective financial statements based on the assumptions of the entity's management without expressing any Testify as an expert ... or prepare a tax return based on financial information the CPA has not audited or reviewed.

Last Answer : Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party

In the list given, hen is odd one out : Human being, cow, dog, hen. The reason for this is a) it undergoes internal fertilisation c)it is oviparous b) it is viviparous d)it undergoes external fertilisation

Description : In the list given, hen is odd one out : Human being, cow, dog, hen. The reason for this is a) it undergoes internal fertilisation c)it is oviparous b) it is viviparous d)it undergoes external fertilisation

Last Answer : c)it is oviparous

Closing entries a. are prepared before the financial statements. b. reduce the number of permanent accounts. c. cause the revenue and expense accounts to have zero balances. d. summarize the activity in every account.

Description : Closing entries a. are prepared before the financial statements. b. reduce the number of permanent accounts. c. cause the revenue and expense accounts to have zero balances. d. summarize the activity in every account.

Last Answer : c. cause the revenue and expense accounts to have zero balances.

---------------- establishes the relationship of different individual items which same common items a) Common size statements b) Comparative statements c) Trend analysis d) Comparative Income Statement

Description : ---------------- establishes the relationship of different individual items which same common items a) Common size statements b) Comparative statements c) Trend analysis d) Comparative Income Statement

Last Answer : a) Common size statements

The final step in the accounting cycle is to prepare a. closing entries. b. financial statements. c. a post-closing trial balance. d. adjusting entries.

Description : The final step in the accounting cycle is to prepare a. closing entries. b. financial statements. c. a post-closing trial balance. d. adjusting entries.

Last Answer : c. a post-closing trial balance.

Which one of the following is usually prepared only at the end of a company's annual accounting period? a. Preparing financial statements b. Journalizing and posting adjusting entries c. Journalizing and posting closing entries d. Preparing an adjusted trial balance

Description : Which one of the following is usually prepared only at the end of a company's annual accounting period? a. Preparing financial statements b. Journalizing and posting adjusting entries c. Journalizing and posting closing entries d. Preparing an adjusted trial balance

Last Answer : c. Journalizing and posting closing entries

Closing entries are journalized and posted a. before the financial statements are prepared. b. after the financial statements are prepared. c. at management's discretion. d. at the end of each interim accounting period.

Description : Closing entries are journalized and posted a. before the financial statements are prepared. b. after the financial statements are prepared. c. at management's discretion. d. at the end of each interim accounting period.

Last Answer : b. after the financial statements are prepared.

Closing entries are made a. in order to terminate the business as an operating entity. b. so that all assets, liabilities, and Stockholders' equity accounts will have zero balances when the next accounting period starts. c. in order to transfer net income (or loss) and dividends to the retained earnings account. d. so that financial statements can be prepared.

Description : Closing entries are made a. in order to terminate the business as an operating entity. b. so that all assets, liabilities, and Stockholders' equity accounts will have zero balances when the ... ) and dividends to the retained earnings account. d. so that financial statements can be prepared.

Last Answer : c. in order to transfer net income (or loss) and dividends to the retained earnings account. unt.

Reporting currency is the currency used _________ (a) In recording the financial transactions (b) In presenting the financial statements

Description : Reporting currency is the currency used _________ (a) In recording the financial transactions (b) In presenting the financial statements

Last Answer : (b) In presenting the financial statements

Disclose accounting information a) Balance sheet b) Trading account c) Profit and Loss Account d) Financial statements

Description : Disclose accounting information a) Balance sheet b) Trading account c) Profit and Loss Account d) Financial statements

Last Answer : d) Financial statements

Financial Statements provide a summary of -------------------------- a) Accounts b) Assets c) Liabilities d) Expenses

Description : Financial Statements provide a summary of -------------------------- a) Accounts b) Assets c) Liabilities d) Expenses

Last Answer : a) Accounts

Comparison and interpretation of ratio is known as --------------------- a) Fund flow analysis b) Cash flow analysis c) Ratio analysis d) Trend analysis

Description : Comparison and interpretation of ratio is known as --------------------- a) Fund flow analysis b) Cash flow analysis c) Ratio analysis d) Trend analysis

Last Answer : c) Ratio analysis

Internal auditing can affect the scope of the external auditor's audit of financial statements by a. Decreasing the external auditor's need to perform detailed testsb. Eliminating the need to observe thephysical inventory taking.c. Allowing the external auditor to limithis/her audit to the performance ofsubstantive test procedures.d. Limiting direct testing by the externalauditor to management assertions notdirectly tested by internal auditing.

Description : Internal auditing can affect the scope of the external auditor's audit of financial statements by a. Decreasing the external auditor's need to perform detailed tests b. Eliminating the need ... direct testing by the external auditor to management assertions not directly tested by internal auditing.

Last Answer : Decreasing the external auditor's need to perform detailed tests

Which statement is correct regarding the relationship between internal auditing and the external auditor? a. Some judgments relating to the audit of the financial statements are those of the internal auditor. b. The external audit function's objectives vary according to management's requirements. c. Certain aspects of internal auditing may be useful in determining the nature, timing and extent of external audit procedures. d. The external auditor is responsible for the audit opinion expressed, however that responsibility may be reduced by any use made of internal auditing

Description : Which statement is correct regarding the relationship between internal auditing and the external auditor? a. Some judgments relating to the audit of the financial statements are those of the ... opinion expressed, however that responsibility may be reduced by any use made of internal auditing

Last Answer : Certain aspects of internal auditing may be useful in determining the nature, timing and extent of external audit procedures.

Which of the following statements is not a distinction between independent auditing and internal auditing? a. Independent auditors represent third party users external to the auditee entity, whereas internal auditors report directly to management. b. Internal auditors are employees of the auditee, whereas independent auditors are independent contractors. c. The internal auditor's span of coverage goes beyond financial auditing to encompass operational and performance auditing. d. Although independent auditors strive for both validity and relevance of evidence, internal auditors are concerned almost exclusively with validity.

Description : Which of the following statements is not a distinction between independent auditing and internal auditing? a. Independent auditors represent third party users external to the auditee entity, ... validity and relevance of evidence, internal auditors are concerned almost exclusively with validity.

Last Answer : Although independent auditors strive for both validity and relevance of evidence, internal auditors are concerned almost exclusively with validity.

A control system where accountability is established with responsibility is known as -------------- a) Cost accounting b) Responsibility accounting c) Financial accounting d) None of the above

Description : A control system where accountability is established with responsibility is known as -------------- a) Cost accounting b) Responsibility accounting c) Financial accounting d) None of the above

Last Answer : b) Responsibility accounting

Which one of the following statements is correct? (A) The function of an information system is to improve one s ability to make decisions (B) The information system is the chain of operations (C) A map is a collection of stored, analysed data, its stored information is suitability used in making decisions (D) All the above

Description : Which one of the following statements is correct? (A) The function of an information system is to improve one s ability to make decisions (B) The information system is the chain of operations ... , analysed data, its stored information is suitability used in making decisions (D) All the above

Last Answer : Answer: Option D

hen a hacker attempts to attack a host via the Internet it is known as what type of attack? a. Local access b. Remote attack c. Internal attack d. Physical access

Description : hen a hacker attempts to attack a host via the Internet it is known as what type of attack? a. Local access b. Remote attack c. Internal attack d. Physical access

Last Answer : b. Remote attack

ABC analysis is an inventory control technique in which: (a) Inventory levels are maintained (b) Inventory is classified into A, B and C category with A being the highest quantity, lowest value. (c) Inventory is classified into A, B and C Category with A being the lowest quantity, highest value (d) Either b or c

Description : ABC analysis is an inventory control technique in which: (a) Inventory levels are maintained (b) Inventory is classified into A, B and C category with A being the highest quantity, lowest value. (c) ... A, B and C Category with A being the lowest quantity, highest value (d) Either b or c

Last Answer : (c) Inventory is classified into A, B and C Category with A being the lowest quantity, highest value

Which of these is not a Material control technique: (a) ABC Analysis (b) Fixation of raw material levels (c) Maintaining stores ledger (d) Control over slow moving and non moving items

Description : Which of these is not a Material control technique: (a) ABC Analysis (b) Fixation of raw material levels (c) Maintaining stores ledger (d) Control over slow moving and non moving items

Last Answer : (c) Maintaining stores ledger

A statement depicting the reasons for the change in cash position from one period to another a) Fund flow statement b) Statement of uses and application of funds c) Cash flow statement d) Ratio analysis

Description : A statement depicting the reasons for the change in cash position from one period to another a) Fund flow statement b) Statement of uses and application of funds c) Cash flow statement d) Ratio analysis

Last Answer : a) Fund flow statement

The main aim of the ratio analysis is to help the ----------of the firm a) Owners b) Officials c) Departments d) Management

Description : The main aim of the ratio analysis is to help the ----------of the firm a) Owners b) Officials c) Departments d) Management

Last Answer : d) Management

Ratios of different items for various periods are calculated and compared a) Common size b) Comparative c) Trend analysis d) Ratio analysis

Description : Ratios of different items for various periods are calculated and compared a) Common size b) Comparative c) Trend analysis d) Ratio analysis

Last Answer : d) Ratio analysis

Expressed as a percentage of each asset to total a) Common size P/L A/C b) Common size Balance Sheet c) Comparative Income Statement d) Trend analysis

Description : Expressed as a percentage of each asset to total a) Common size P/L A/C b) Common size Balance Sheet c) Comparative Income Statement d) Trend analysis

Last Answer : b) Common size Balance Sheet

----------------------- helps in drawing inferences of conclusions a) Analysis b) Interpretation c) Comparison d) None of the above

Description : ----------------------- helps in drawing inferences of conclusions a) Analysis b) Interpretation c) Comparison d) None of the above

Last Answer : b) Interpretation

Trend analysis is significant for a) Forecasting and budgeting b) Profit planning c) Capital rationing d) None of the above

Description : Trend analysis is significant for a) Forecasting and budgeting b) Profit planning c) Capital rationing d) None of the above

Last Answer : a) Forecasting and budgeting

The process of deriving conclusions from the analysis is commonly termed as ---------------- a) Analysis b) Conclusion c) Comparison d) Interpretation

Description : The process of deriving conclusions from the analysis is commonly termed as ---------------- a) Analysis b) Conclusion c) Comparison d) Interpretation

Last Answer : d) Interpretation

Interpretation requires analysis and ---------------------------------- a) Comaprison b) Determination c) Decision Making d) Conclusion

Description : Interpretation requires analysis and ---------------------------------- a) Comaprison b) Determination c) Decision Making d) Conclusion

Last Answer : a) Comaprison

External reconstruction is more or less same as that of amalgamation in the nature of purchase.

Description : External reconstruction is more or less same as that of amalgamation in the nature of purchase.

Last Answer : TRUE