Financial Statements of a Company — Accountancy STD 12 Commerce — Question

Fly Ltd, a stock broker, purchased 5,000 shares of Tata Housing Ltd. It is:

Ratios provide a _____________ measure of a company's performance and condition.

1. Definitive.
2. Gross.
3. Relative.
4. Qualitative.

The ___________ is useful in evaluating credit and collection policies.

1. Average payment period.
2. Current ratio.
3. Average collection period.
4. Inventory turnover ratio.

The value at which an item appears in the financial statement is called its:

1. Historical cost
2. Book value
3. Current cost
4. Depreciable value

As Per Cash Flow Statement, when a firm invests in fixed assets and short-term financial investments results into:

1. Deceased Cash Outflow
2. Deceased Cash Inflow
3. Increased Cash Inflow
4. Increased Cash Outflow

An example of an activity which is classified as financing activity in case of all enterprise is:

1. Payment of salaries.
2. Payment of Dividend on Shares.
3. Purchase of Goodwill.
4. Payment of Interest on Borrowings.

ABC Co. extends credit terms of 45 days to its customers. Its credit collection would be considered poor if its average collection period was:

1. 30 days.
2. 36 days.
3. 40 days.
4. 57 days.

When Debentures are issued at a discount, Which Account Is Debited.

1. Both A and B
2. Debentures A/c
3. Vendors A/c
4. Discount on Issue of Debenture A/c

Which of the following shows the actual financial position of n enterprise?

1. Fund Flow
2. Balance Sheet
3. P & L A/c
4. Ratio Analysis

___________ analysis involves comparison of current to past performance and the evaluation of developing trends.

1. Time - series.
2. Cross - sectional.
3. Marginal.
4. Quantitative.