Financial Statements Questions

Which of the following does not result in an outflow of cash?(A) Depreciation(B) Loss on sale of fixed assets(C) Purchase of fixed assets(D) Goodwill written offChoose the correct answer from the options given below:

Match List-I with List-II as per Schedule III of the Companies Act, 2013:List-IList-II(A) SHAREHOLDERS FUND(I) Non-current investments(B) CURRENT LIABILITIES(II) Reserves and Surplus(C) CURRENT ASSET(III) Trade Payables(D) FIXED ASSET(IV) InventoriesChoose 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:

Arrange the following items in the chronological order in which they appear in a Cash Flow Statement as per Accounting Standard-3 (AS-3):(A) Investing activities(B) Operating activities(C) Financing Activities(D) Cash and cash equivalentsChoose the correct answer from the options given below:

Arrange the following line items in the sequence in which they appear in the Balance Sheet as prescribed in Part I of Schedule III of the Companies Act, 2013:(A) Non-current liabilities(B) Current liabilities(C) Current Assets(D) Shareholders' fundsChoose the correct answer from the options given below:

Match List-I with List-II based on Cash Flow Statement classifications:List-IList-II(A) Operating Activities(I) Current Investment(B) Investing Activities(II) Dividends paid on equity and preference capital(C) Financing Activities(III) Cash receipt from disposal of fixed assets including intangibles(D) Cash equivalents(IV) Cash receipts from royalties, fees, commissions and other revenuesChoose the correct answer from the options given below:

A Balance Sheet provides specific operational insights regarding the financial position of an enterprise:

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:

Calculate the Current Ratio from the following financial data:ParticularsAmount (in Rs.)Inventories$60,000$ Trade receivables$60,000$ Advance tax$4,000$ Cash and cash equivalents$50,000$ Trade payables$1,30,000$ Bank Overdraft$4,000$

Match List-I with List-II based on standard financial ratio classifications:List-IList-II(A) Liquidity Ratios(I) Debt to Capital Employed Ratio(B) Solvency Ratios(II) Net profit ratio(C) Activity Ratios(III) Current Ratio(D) Profitability Ratios(IV) Working capital Turnover RatioChoose the correct answer from the options given below:

Based on Case Study 1, find the Average Collection Period.

Based on Case Study 1, find the Average Payment Period.

Based on Case Study 1, find the value of total Trade Payables.

Based on Case Study 1, what is the Trade Payables Turnover Ratio?

Based on Case Study 1, find the Trade Receivables Turnover Ratio.