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
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
