Analysis Questions

Common-Size Statements, which analyze financial statements by converting each line item into a percentage of a common base item, are also known as:

The term Financial Analysis includes:

Common Size Statements are also known as:

Based on the case study details provided, what is the value of Profit Before Interest and Tax (EBIT)?

Financial analysis is useful and important to different users. Which of the following is not the user of Financial analysis:

Which of the following indicate limitation of Financial analysis:

The common size statements are useful, both, in intra-firm comparisons over different years and also in making inter-firm comparisons for several years. This analysis is also known as

Which analysis is a judgemental process which aims to estimate current and past financial positions and the results of the operation of an enterprise, with primary objective of determining the best possible estimates and predictions about the future conditions?

From the following details, calculate net profit before tax:Net Profit after tax is Rs. 50,000;15% Long-term debt 12,00,000;Tax rate 20%.

The value of long-term borrowings as on March 31, 2023 was:

What is the percentage change in Share Capital from 2023 to 2024?

The value of Reserves and Surplus as on March 31, 2024 stood at:

What is the value of Tangible Assets as on March 31, 2024?

What is the percentage change in Cash and Cash Equivalents from 2023 to 2024?

Profit after interest and tax is ₹ $1,60,000$.$10\%$ Long-term borrowing is ₹ $20,00,000$.Rate of Tax is $20\%$.Profit before interest and tax will be:

Which of the following analytical methodologies is NOT classified as a standard tool for financial statement analysis?

Match List-I with List-II:List-IList-II(A) Statements indicating the relationship of different items of a financial statement with a common item by expressing each item as a percentage of that common item(I) Trend Analysis(B) Technique of studying the operational results and financial position over a series of consecutive years(II) Comparative Statements(C) Statements showing profitability and financial position for different periods of time to give an idea about the changes between two or more periods(III) Ratio Analysis(D) Describes the significant mathematical relationship which exists between various items of a balance sheet and a statement of profit and loss(IV) Common-Size StatementsChoose the correct answer from the options given below:

Analysis simply means __________ data.

Arrange the following items in the correct descending logical sequence as they appear during the sequential calculations in a Common-Size Income Statement (Statement of Profit and Loss):(A) Net Profit / Profit before tax(B) Non-Operating Income(C) Revenue from Operations(D) Profit after taxChoose the correct answer from the options given below:

Which among the following are the commonly used analytical tools for financial statement analysis?(A) Horizontal analysis(B) Vertical analysis(C) Ratio analysis(D) Trend analysisChoose the correct answer from the options given below:

Which of the following is NOT an active structural element of a business firm's credit policy parameters?

Arrange the following steps in the correct logical sequence to prepare Comparative Financial Statements:(A) List the absolute financial figures in rupees for both points of time.(B) Prepare the required statement format with columns.(C) Find the change in absolute figures by subtracting the base year from the current year, indicating the change as an increase or decrease.(D) Calculate the percentage change using the base year as the benchmark.Choose the correct answer from the options given below:

Which of the following statements is NOT true about Comparative Statements?

Match List-I with List-II:List-IList-II(A) Comparative statements(I) Operating Activities(B) Common Size Statement(II) Horizontal Analysis(C) Cash flow Analysis(III) Debt Equity Ratio(D) Ratio Analysis(IV) Vertical AnalysisChoose the correct answer from the options given below:

The analysis of financial statements does not serve the purposes of:

Net Profit after tax Rs. 60,000; 10% Long-term debt Rs.10,00,000; and Tax rate 40%. The net profit before interest and tax is:

Match List-I with List-IIList-IList-II(A) comparative statement(III) study the relationship between two or more years.(B) common size statement(IV) express each item as a percentage of the common base or item.(C) trend analysis(I) study the operational results over the series of years.(D) ratio analysis(II) express the relationship between various items of financial statement.Choose the correct answer from the options given below:

Which market conditions enable firms to earn high/supernormal profits over an extended period due to lack of competitive substitutes?

Operating Expenses include:A. Rent paidB. Interest paid on loanC. Selling and Distribution ExpensesD. Commission ReceivedE. Salaries PaidChoose the correct answer from the options given below:

Identify the correct sequence to find out profit after tax while preparing comparative income statement A. Deduct expensesB. Find out total revenue by adding other incomes to revenue from operationsC. Find out profit after taxD. Deduct taxE. Calculate profit before tax Choose the correct answer from the options given below:

Common size analysis is also known as

The commonly used Techniques of financial Statements Analysis includes :(A) Common size statements(B) Ratio Analysis(C) Trend Analysis(D) Capital Budgeting StatementChoose the correct answer from the options given below :

Rearrange the following items in a sequence while preparing common size statement.(A) Calculate percentage of the total as per common base(B) Prepare the format of Balance sheet and Profit and Loss A/c(C) List out absolute figures in rupees at two points of time(D) Choose a common baseChoose the correct answer from the options given below :

In common size statement, if revenue from operations are Rs. $23,00,000$ and other incomes are Rs. $3,00,000$, then the percentage of 'Total Revenue from Operations' to 'Revenue from operations' will be:

Comparative Statements are also known as:

Horizontal analysis is known as:

The main objective of common size statement of profit and loss is:

Comparative statements are the form of:

Vertical analysis uses financial data of a company for:

The comparative financial statements show:

Common size statements are the form of:

Which of the following combinations of statements are NOT true regarding financial analysis and financial reporting metrics?(A) Financial analysis is used only by the creditors.(B) Comparative statements are a form of vertical analysis.(C) The financial statements of a business enterprise include a cash flow statement.(D) Ratio analysis establishes relationships between two financial variables.Choose the correct answer from the options given below:

Which of the following items is not a tool of financial statement analysis?

Match List I with List II:\begin{tabular}{|l|l|}\hline\textbf{LIST I} & \textbf{LIST II} \ \hlineA. Horizontal Analysis & I. Common-size statement \ \hlineB. Vertical Analysis & II. Comparative statement \ \hlineC. External Analysis & III. Access to all published and unpublished information \ \hlineD. Internal Analysis & IV. Access only to published financial records \ \hline\end{tabular}Choose the correct answer from the options given below:

The excess value of net assets acquired over the purchase consideration at the time of purchasing a business is credited to which account?

Match List-I with List-II:List-IList-II(A) Comparative Statements(I) These are the statements which indicate the relationship of different items of a financial statement with a common item by expressing each item as a percentage of that common item.(B) Common Size Statements(II) It is a technique of studying the operational results and financial position over a series of years.(C) Trend Analysis(III) It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm.(D) Ratio Analysis(IV) These are the statements showing the profitability and financial position of a firm for different periods of time in a comparative form to give an idea about the position of two or more periods.Choose the correct answer from the options given below:

Which of the following statements are true-(A) The financial statements of a business enterprise include a cash flow statement.(B) Comparative statements are a form of horizontal analysis.(C) Ratio analysis helps a business in identifying problem areas.(D) Financial analysis is used only by creditors.Choose the correct answer from the options given below:

Choose the correct statements from the following:(A) The financial statements of a business enterprise include cash flow statements.(B) Common size statements and financial ratios are two tools employed in vertical analysis.(C) Financial analysis helps an analyst to arrive at a decision.(D) Comparative statements are a form of vertical analysis.Choose the correct answer from the options given below:

Choose the pair of correct statements from the following:(A) The only purpose of financial reporting is to keep the managers informed about the progress of operations.(B) Analysis of data provided in the financial statements is termed as financial analysis.(C) Long-term borrowings are analyzed to check the ability of a firm to discharge its obligations to pay interest and repay the principal amount.(D) Financial ratios reflect both quantitative and qualitative aspects of business performance. Choose the correct answer from the options given below:

Match List-I with List-IIList-IList-II(A) Comparative Statements(I) It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm.(B) Common Size Statements(III) These are the statements which indicate the relationship of different items of a financial statement with a common item by expressing each item as a percentage of that common item.(C) Trend Analysis(II) It is a technique of studying the operational results and financial position over a series of years.(D) Ratio Analysis(IV) These are the statements showing the profitability and financial position of a firm for different periods of time.Choose the correct answer from the options given below:

Which of the following is True about analysis of financial statements-(A) The financial statements of a business enterprise include cash flow statement.(B) Financial analysis is used only by the creditors.(C) Comparative statements are the form of horizontal analysis.(D) Financial analysis helps an analyst to arrive at a decision.Choose the correct answer from the options given below:

While preparing common-size Balance sheet, each item of Balance sheet is expressed as $\%$ of

Which of the following is NOT classified as a tool for the analysis of Financial Statements?