Q. When ratios are calculated from the financial statements of one year, it is known as ---------------------
✅ Correct Answer: (B)
Vertiacal analysis
Accounting for Managerial Decisions MCQs and Notes
Q. When financial statements for a number of years are reviewed and analysed, the analysis is known as ---------------------
✅ Correct Answer: (C)
Horizontal analysis
Q. Financial Statements provide a summary of --------------------------
✅ Correct Answer: (A)
Accounts
Q. External analysis is based on ------------- financial statements
✅ Correct Answer: (B)
Published
Q. Common size Income Statement present the various items as a percentage of ----------------
✅ Correct Answer: (A)
Sales
Q. The process of deriving conclusions from the analysis is commonly termed as ----------------
✅ Correct Answer: (D)
Interpretation
Q. Interpretation requires analysis and ----------------------------------
✅ Correct Answer: (A)
Comaprison
Q. Comparison of financial variables of a firm over a period of time is known as--------------
✅ Correct Answer: (C)
Trend analysis
Q. Vertical analysis is made to review and analyse the financial statements of -----------------accounting period.
✅ Correct Answer: (A)
One
Q. Horizontal Analysis shows the comparison of data for several years against a chosen ---------------- year.
✅ Correct Answer: (A)
Base year