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

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

1 Answer

Answer :

b) Ratio analysis
by

Related questions

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

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

Which of the following are techniques, tools or methods of analysis and interpretation of financial statements? A. Ratio Analysis B. Average Analysis C. Trend Analysis D. All of the above

Description : Which of the following are techniques, tools or methods of analysis and interpretation of financial statements? A. Ratio Analysis B. Average Analysis C. Trend Analysis D. All of the above

Last Answer : D. All of the above

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

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

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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

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Last Answer : b) Common size Balance Sheet

---------------- 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

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Last Answer : a) Common size statements

----------------------- 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

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

Income statement ratios are also called ----------- a) Operating ratio b) Liquidity ratio c) Activity ratio d) Trend ratio

Description : Income statement ratios are also called ----------- a) Operating ratio b) Liquidity ratio c) Activity ratio d) Trend ratio

Last Answer : a) Operating ratio

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Last Answer : a) Forecasting and budgeting

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Last Answer : c) Financial

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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

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The ratios that shows tha capacity of the business unit to meet its short term obligation out of its short term resources is known as -------------- a) Solvency ratio b) Leverage ratio c) Liquidity ratio d) Trend Ratio

Description : The ratios that shows tha capacity of the business unit to meet its short term obligation out of its short term resources is known as -------------- a) Solvency ratio b) Leverage ratio c) Liquidity ratio d) Trend Ratio

Last Answer : c) Liquidity ratio

The relationship between two amount or variables is measured with the help of ------------ a) Ratio b) Trend c) Comparative d) Common size

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Last Answer : a) Ratio

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Description : Coverage based analysis is best described as: A. A metric used to show the logic covered during a test session providing insight to the extent of testing. B. A tool for documenting the unique ... their status through to resolution. D. The most traditional means for analyzing a system or a program

Last Answer : A. A metric used to show the logic covered during a test session providing insight to the extent of testing.

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

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Last Answer : a) Fund flow statement

he steps in the preparation of a worksheet do not include a. analyzing documentary evidence. b. preparing a trial balance on the worksheet. c. entering the adjustments in the adjustment columns. d. entering adjusted balances in the adjusted trial balance columns.

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Last Answer : a. analyzing documentary evidence.

The first required step in the accounting cycle is a. reversing entries. b. journalizing transactions in the book of original entry. c. analyzing transactions. d. posting transactions.

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Last Answer : c. analyzing transactions.

he step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is a. analyzing transactions. b. journalizing and posting adjusting entries. c. preparing a post-closing trial balance. d. posting to ledger accounts.

Description : he step in the accounting cycle that is performed on a periodic basis (i.e., monthly, quarterly) is a. analyzing transactions. b. journalizing and posting adjusting entries. c. preparing a post-closing trial balance. d. posting to ledger accounts.

Last Answer : b. journalizing and posting adjusting entries.

Ratios indicate trends in important items and this helps in ----------- a) Forecasting b) Reporting c) Analyzing d) Interpreting

Description : Ratios indicate trends in important items and this helps in ----------- a) Forecasting b) Reporting c) Analyzing d) Interpreting

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------------- 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

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

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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

Description : 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

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Last Answer : b) Published

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

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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

In trend percentage the base year is ---------------------------- a) The first year b) Last year c) Any year d) Second year

Description : In trend percentage the base year is ---------------------------- a) The first year b) Last year c) Any year d) Second year

Last Answer : a) The first year

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

Many sophisticated techniques or tolls are useful in decision-making. Which of the following is a tool that helps managers figure out how much to produce and points out the relationship between revenues, costs, and profits? (a) Marginal analysis ; (b) Breakeven analysis ; (c) Ratio analysis ; (d) Financial analysis

Description : Many sophisticated techniques or tolls are useful in decision-making. Which of the following is a tool that helps managers figure out how much to produce and points out the relationship between revenues, ... Marginal analysis ; (b) Breakeven analysis ; (c) Ratio analysis ; (d) Financial analysis

Last Answer : (b) Breakeven analysis ;

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Description : Interpretation means (a) Explanation of meaning and significance of the data in Financial Statements. (b) Concerned with preparation and presentation of classified data (c) Systematic analysis of recorded data (d) Methodical classification of data given in Financial Statements

Last Answer : (a) Explanation of meaning and significance of the data in Financial Statements.

Management accounting involves A. Preparation of financial statements B. Analysis and interpretation of data C. Recording of transactions D. None of the above

Description : Management accounting involves A. Preparation of financial statements B. Analysis and interpretation of data C. Recording of transactions D. None of the above

Last Answer : B. Analysis and interpretation of data

For the financial year ended as on March 31, 2013 the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs. 29,000; Purchases Rs. 2,42,000; Sales Rs. 3,20,000; Gross Profit 25% of Sales. Stock Turnover Ratio will be :- (a) 8 times (b) 6 times (c) 9 times (d) 10 times

Description : For the financial year ended as on March 31, 2013 the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs. 29,000; Purchases Rs. 2,42,000; Sales Rs. 3,20,000; Gross Profit 25% of ... Stock Turnover Ratio will be :- (a) 8 times (b) 6 times (c) 9 times (d) 10 times

Last Answer : (a) 8 times

he ratio which is used to ascertain the soundness of the long term financial position is------------ a) Debt equity ratio b) Liquidity ratio c) Activity ratio d) Gross profit ratio

Description : he ratio which is used to ascertain the soundness of the long term financial position is------------ a) Debt equity ratio b) Liquidity ratio c) Activity ratio d) Gross profit ratio

Last Answer : a) Debt equity ratio

---------------- ratio studies the firm’s ability to meet its long term financial position a) Liquidity ratio b) Profitability c) Activity d) Leverage

Description : ---------------- ratio studies the firm’s ability to meet its long term financial position a) Liquidity ratio b) Profitability c) Activity d) Leverage

Last Answer : d) Leverage

-------- helps to disclose financial position a) Trial Balance b) Profit and Loss Account c) Balance sheet d) Income Statement

Description : -------- helps to disclose financial position a) Trial Balance b) Profit and Loss Account c) Balance sheet d) Income Statement

Last Answer : -------- helps to disclose financial position a) Trial Balance b) Profit and Loss Account c) Balance sheet d) Income Statement

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

In time-series analysis, which source of variation can be estimated by the ratio-to-trend method? a) Cyclical b) Trend c) Seasonal d) Irregular

Description : In time-series analysis, which source of variation can be estimated by the ratio-to-trend method? a) Cyclical b) Trend c) Seasonal d) Irregular

Last Answer : c) Seasonal

What is the Most important tool for the analyzing the production distribution and consumption of goods and services?

Description : What is the Most important tool for the analyzing the production distribution and consumption of goods and services?

Last Answer : Economic analysis is need for analyzing the production,distribution and consumption of goods. This allows a group orbusiness understand what goods are the most needed and sell thebest.

What is the Most important tool for the analyzing the production distribution and consumption of goods and services?

Description : What is the Most important tool for the analyzing the production distribution and consumption of goods and services?

Last Answer : Economic analysis is need for analyzing the production,distribution and consumption of goods. This allows a group orbusiness understand what goods are the most needed and sell thebest.

A statement prepared in the form of report a) Fund flow b) Cash flow c) Ratio d) Balance sheet

Description : A statement prepared in the form of report a) Fund flow b) Cash flow c) Ratio d) Balance sheet

Last Answer : a) Fund flow

Return on investment is a---------------- a) Profit and loss account ratio b) Balance sheet ratio c) Combined ratio d) Position statement ratio

Description : Return on investment is a---------------- a) Profit and loss account ratio b) Balance sheet ratio c) Combined ratio d) Position statement ratio

Last Answer : c) Combined ratio

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

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

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