Q. Proprietary ratio is a
✅ Correct Answer: (B)
long-term solvency ratio.
Analysis of Financial Statements MCQs and Notes
Q. Return on investment is a
✅ Correct Answer: (C)
profitability ratios.
Q. The ratios which reveal the final result of the managerial policies and performance is .
✅ Correct Answer: (B)
profitability ratios.
Q. Determine stock turnover ratio if, Opening stock is Rs 31,000 , Closing stock is Rs 29,000, Sales is Rs 3,20,000 & Gross profit ratio is 25% on sales.
✅ Correct Answer: (C)
8 times
Q. If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is
✅ Correct Answer: (A)
24%
Q. Return on properties funds is also known as.
✅ Correct Answer: (D)
all the above
Q. Horizontal analysis is done by analyzing ____________.
✅ Correct Answer: (D)
financial statements of a particular year
Q. Vertical analysis is made on the basis of __________.
✅ Correct Answer: (A)
single set of financial statements
Q. Financial statements are meaningful and useful only when they are ___________.
✅ Correct Answer: (C)
analyzed and interpreted
Q. Comparative statement analysis sheet is __________.
✅ Correct Answer: (B)
horizontal analysis