FINANCE & FINANCIAL STATEMENT ANALYSIS PART-4

Q.1:- If a company revalued its assets, its net worth will:

• Improve
• Remain same
• None of these
• a) Decrease

Q.2:- Accounting policies, method, and estimates used in preparing financial statements are most likely found in the:

• Auditor's report
• Management commentary
• Notes to the financial statement
• None of the above

Q.3:- Net income available for common stockholders divided by total assets is used to calculate:

• Return on total equity
• Return on Debt
• Return on Total Asset
• Return on Sales

Q.4:- Which AS is not applicable on SME

• Employee benefits
• Leases
• Segment reporting
• Impairment of Assets

Q.5:- The term current asset does not cover:

• Prepaid Expenses
• Stock
• Receivable
• Motorcycle

Q.6:- . The assets held by a business which can be converted in the form of cash, without disturbing anal operations of a business

• Current assets
• Tangible assets
• Intangible Assets
• Fixed assets

Q.7:- Which of the following is the main objective of a financial statement?

• All
• to know the earning capacity
• to know the debt capacity
• to know the solvency

Q.8:- In financial statement the stock is valued at cost or market price whichever is less on the basis of…

• None
• Accounting principles
• Accounting conventions
• Accounting concepts

Q.9:- The balance sheet shows …

• None
• Both
• the change in working capital
• the source of working capital

Q.10:- Which of the following is technique of financial statement analysis?

• All
• Trend analysis
• Comparative statement
• Common‐size statement

Q.11:- . Which of the following may not be a part of projected financial statements?

• Balance Sheets
• Cash Flow Statements
• Trial Balance
• Income Statements

Q.12:- In a classified balance sheet, which of the following accounts would be listed first

• Prepaid expense.
• Inventory.
• Intangible assets.
• Land

Q.13:- Gears Inc. issued $10 million par value of bonds in 20X7 with an annual coupon rate of 8.0%. The bonds were issued at a price of $1,050 per $1000 par value, and they mature in ten years. The total interest cost of these bonds over their life is:

• $7,500,000.
• $8,000,000.
• $8,400,000.
• $8,500,000.

Q.14:- Which of the following are tools, methods or techniques of analysis and interpretation of financial statements?

• Average Analysis
• Ratio Analysis
• Trend Analysis
• All of the above

Q.15:- Stockholder’s equity would be increased by all of the following EXCEPT:

• issuing new stock above par value.
• positive net income.
• . increase in market price of common stock.
• issuing new stock at par value.

Q.16:- Which of the following is an argument for the relevance of dividends?

• All of the above.
• Some investors' preference for current income
• Reduction of uncertainty.
• Informational content