Q. Who uses the funds flow statement widely?
✅ Correct Answer: (D)
all of the above
Analysis of Financial Statements MCQs and Notes
Q. Basically, the funds flow statement is considered a tool for…
✅ Correct Answer: (B)
financial analysis
Q. The funds flow analysis is of primary importance to…
✅ Correct Answer: (B)
financial management
Q. Share premium, share forfeited, profit and loss account, balance of profit are the examples of…
✅ Correct Answer: (B)
permanent liabilities
Q. The term non-current account refers to…
✅ Correct Answer: (D)
both (a) & (c)
Q. The ratio establishes the relationship between profit before interest and tax and fixed interest charges is
✅ Correct Answer: (A)
interest cover ratio.
Q. The ratio which shows the proportion of profits retained in the business out of the current year’s profits is
✅ Correct Answer: (A)
retained earnings ratio.
Q. The ratio which is calculated to measure the productivity of total assets is
✅ Correct Answer: (C)
return on total assets.
Q. Preliminary expenses is an example of .
✅ Correct Answer: (C)
fictitious assets.
Q. Return on equity is also called
✅ Correct Answer: (D)
return on net worth.