Analysis of Financial Statements:

1. The methodical classification of financial statement is called ___________.
a. an interpretation
b. an analysis
c. ratio
d. profit and loss a/c

2. The common size statement requires _________.
a. choose of common size
b. journal entries
c. cash flow
d. current ratio

3.  The short term deposits are ________
a. net cash
b. cash equivalent
c. cash flow
d. cash outflow

4. Cash proceeds from issue of debentures is _________
      a. financial activity
b. non - financial activity
c. operating activity
d. trading activity

5. Bills payable is _______

a. Long term loan

b. Current liability

c. Liquid asset

d. Net loss

6. Generally current ratio should be _________
a. 2 : 1
b. 1 : 1
c. 3 : 1
d. 1  : 1

7. The relationship between net profit before tax, interest and dividend and capital employed is known from ________

a. current ratio

b. quick ratio

c. ROI

d. ROCE

8. From financial statement analysis, the creditors are interested to know ______

a. liquidity

b. profit

c. sale

d. Share capital