Analysis of Financial Statements — Accountancy STD 12 Commerce — Question

______________ ratios are a measure of the speed with which various accounts are converted into sales or cash.

1. Activity.
2. Liquidity.
3. Debt.
4. Profitability.

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

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

When debentures are issued at a discount, the discount should be written off

1. After debentures have been redeemed.
2. Within 5 years of the issue of debentures.
3. During the life of the debentures.
4. None of the above.

Which of the following is not a part of Finance Cost in Statement of Profit and Loss?

1. Interest on Issue of Debentures
2. Interest Paid on Debentures
3. Interest Paid on Public Deposits
4. Bank SMS Charges

Which of the following items is not an operating expense?

1. Advertising
2. Depreciation of office equipment
3. General management salaries
4. Loss on the sale of motor car

Capital Budgeting Decisions are __________.

1. Reversible
2. Irreversible
3. Unimportant
4. All of the above

The following are the reasons that advocate in favour of Financial Analysis.

1. Helps to ascertain the relative importance of different components of the financial position of the firm
2. It helps in assessing the long-term solvency of the business.
3. It helps in evaluating the profit earning capacity and finance feasibility of a business.
4. All of the above

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

From the following __________ limitations of financial statements.

1. bias
2. assets may not realise
3. vital information missing
4. all of the above

If minimum subscription is not received, then the company is required to refund the amount so received from the applicants within ________ days of issue of prospectus.

1. 90
2. 120
3. 60
4. 15