{"id":18757,"date":"2022-05-28T09:00:20","date_gmt":"2022-05-28T03:30:20","guid":{"rendered":"https:\/\/mcq-questions.com\/?p=18757"},"modified":"2022-05-18T16:10:11","modified_gmt":"2022-05-18T10:40:11","slug":"mcq-questions-for-class-12-accountancy-chapter-9","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/mcq-questions-for-class-12-accountancy-chapter-9\/","title":{"rendered":"MCQ Questions for Class 12 Accountancy Chapter 9 Analysis of Financial Statements with Answers"},"content":{"rendered":"

Students who are searching for NCERT MCQ Questions for Chapter 9 Analysis of Financial Statements with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Accountancy with Answers<\/a>. You can also verify your answers from our provided Analysis of Financial Statements Class 12 MCQs Questions with Answers. So, ace up your preparation with MCQ on Analysis of Financial Statements Class 12 Objective Questions.<\/p>\n

Analysis of Financial Statements Class 12 MCQs Questions with Answers<\/h2>\n

Multiple Choice Questions (MCQs):<\/span><\/p>\n

Question 1.
\nWhich of the following is not recognized as tool for the analysis of financial statements?
\n(a) Cash Flow Statement
\n(b) Funds Flow Statement
\n(c) Trend Analysis
\n(d) Statement showing distribution of dividends<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Statement showing distribution of dividends<\/p>\n<\/details>\n

\n

Question 2.
\nWhich of the following is the objective of comparative statement?
\n(a) To making data simple
\n(b) To make data comparative
\n(c) To help in forcasting
\n(d) To detect financial irregularities<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) To detect financial irregularities<\/p>\n<\/details>\n

\n

Question 3.
\nWhich of the following is not a tool of financial statement analysis?
\n(a) Cash Flow Statement
\n(b) Statement showing distribution of dividend
\n(c) Ratio Analysis
\n(d) Comparative Financial Statements<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Statement showing distribution of dividend<\/p>\n<\/details>\n

\n

Question 4.
\nWhich of the following objectives is not met by comparative statement of Profit and Loss?
\n(a) It helps to compare the figures of atlest two years
\n(b) It helps to assess absolute changes
\n(c) It helps to know the changes in the financial position
\n(d) It helps to know the percent changes in the statement of Profit and Loss<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) It helps to know the changes in the financial position<\/p>\n<\/details>\n

\n

Question 5.
\nFinancial analysis can be done with which of the following tool?
\n(a) Ratio Analysis
\n(b) Cash Flow Statement
\n(c) Comparative Statements
\n(d) All of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of the above<\/p>\n<\/details>\n

\n

Question 6.
\nAnalysis of financial statements for two or more years is known as
\n(a) Horizontal analysis
\n(b) External analysis
\n(c) Vertical analysis
\n(d) Internal analysis<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Horizontal analysis<\/p>\n<\/details>\n

\n

Question 7.
\nWhich of the following is not an objective of financial statement analysis?
\n(a) Efficiency of the Management
\n(b) Price Level Changes
\n(c) Profitability of the Enterprise
\n(d) Solvency of the Enterprise<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Price Level Changes<\/p>\n<\/details>\n

\n

Question 8.
\nWho of the following has no financial interest in the analysis of financial statements?
\n(a) Management
\n(b) Debtor
\n(c) Creditor
\n(d) Investor<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Debtor<\/p>\n<\/details>\n

\n

Question 9.
\nWho has the interest in long-term solvency position of the firm?
\n(a) Creditors
\n(b) Bankers providing overdraft facilities
\n(c) Financial Institutions
\n(d) Short-term money lenders<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Financial Institutions<\/p>\n<\/details>\n

\n

Question 10.
\nWhich of the following is not a limitation in the analysis of financial statements?
\n(a) Ignores Price Level Changes
\n(b) Window Dressing
\n(c) Financial performance of the firm
\n(d) Bias of the Analyst<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Financial performance of the firm<\/p>\n<\/details>\n

\n

State whether the following statements are true or false:<\/span><\/p>\n

Question 11.
\nComparative financial statements reflect changes in the items in absolute amount only.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 12.
\nComparative Financial Statements are prepared at the end a financial year.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 13.
\nShareholders are interested to know short-term financial position of an enterprise.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 14.
\nCompression of financial statements of two or more years of the same firm is known as inter-firm comparison.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 15.
\nManipulation of accounts is known as window dressing.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 16.
\nBoth quantitative and well as qualitative aspects are ignored in the analysis of financial statements.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 17.
\nFinancial statements do not reflect price level changes.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 18.
\nStatement showing the pay roll in a company is one of the tool for the analysis of financial statements.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Question 19.
\nComparative financial statements represent the date for two or more years.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: True<\/p>\n<\/details>\n

\n

Question 20.
\nComparative Statement of Profit and Loss reflects changes in the financial position of an enterprise.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: False<\/p>\n<\/details>\n

\n

Fill in the blanks with correct word:<\/span><\/p>\n

Question 21.
\nFinancial statement analysis is the post-mortem of the business _________.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: transactions<\/p>\n<\/details>\n

\n

Question 22.
\nComparative financial statements mean a comparative study of _______ of an enterprise for two or more years.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Financial Statements<\/p>\n<\/details>\n

\n

Question 23.
\n_________ analysis is conducted by those who do not have access to the detailed records of an enterprise.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: External<\/p>\n<\/details>\n

\n

Question 24.
\n________ refers to the comparison of financial statements within an enterprise.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Intra-firm comparison<\/p>\n<\/details>\n

\n

Question 25.
\nPreparation of financial statements are ________ in nature.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Historical<\/p>\n<\/details>\n

\n

Question 26.
\nWhen the financial statements of two or more enterprises are compared, it is known as __________.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Inter-firm comparison<\/p>\n<\/details>\n

\n

Question 27.
\nIn ______ statement, components of balance sheets are compared with the total of balance sheet.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Common size balance sheet<\/p>\n<\/details>\n

\n

Question 28.
\nAbsolute changes in the comparative financial statements are found by comparing current year figure with _____ year\u2019s figure.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Previous<\/p>\n<\/details>\n

\n

Question 29.
\nThe items of comparative income statement are converted into percentage by taking _______ as base.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Revenue from Operations<\/p>\n<\/details>\n

\n

Question 30.
\nCash Flow Statement reflects _____ and ______ of cash and cash equivalents during an accounting year.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Inflows, outflows<\/p>\n<\/details>\n

\n

One word Questions:<\/span><\/p>\n

Question 31.
\nState any one limitation of Financial Statement Analysis. (CBSE Compartment Delhi 2014, 2015)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Historical Analysis of financial Statement.<\/p>\n<\/details>\n

\n

Question 32.
\nState any one objective of analysis of financial statements. (CBSE Compartment Delhi 2014)<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: To measure earning capacity of business.<\/p>\n<\/details>\n

\n

Question 33.
\nState the type of Financial Statement Analysis in which figures of the same items of various years are compared.<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Horizontal analysis.<\/p>\n<\/details>\n

\n

Question 34.
\nWhich type of financial statement analysis helps a company to establish the relationship between different items financial statement of a same year?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Vertical analysis.<\/p>\n<\/details>\n

\n

Question 35.
\n\u201cOne of the objectives of Financial Statement Analysis is to assess solvency of business\u201d. What does the term \u2018solvency\u2019 mean here ?<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: Solvency means ability to pay the debts.<\/p>\n<\/details>\n

\n

Use the above-provided NCERT MCQ Questions for Class 12 Accountancy Chapter 9 Analysis of Financial Statements with Answers Pdf free download and get a good grip on the fundamentals. Need any support from our end during the preparation of CBSE Class 12 Accountancy Analysis of Financial Statements MCQs Multiple Choice Questions with Answers then leave your comments below. We’ll revert back to you soon.<\/p>\n","protected":false},"excerpt":{"rendered":"

Students who are searching for NCERT MCQ Questions for Chapter 9 Analysis of Financial Statements with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 12 Accountancy with Answers. You can also verify your answers from our provided Analysis of Financial …<\/p>\n

MCQ Questions for Class 12 Accountancy Chapter 9 Analysis of Financial Statements with Answers<\/span> Read More »<\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":""},"categories":[35],"tags":[],"yoast_head":"\nMCQ Questions for Class 12 Accountancy Chapter 9 Analysis of Financial Statements with Answers - MCQ Questions<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mcq-questions.com\/mcq-questions-for-class-12-accountancy-chapter-9\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MCQ Questions for Class 12 Accountancy Chapter 9 Analysis of Financial Statements with Answers - MCQ Questions\" \/>\n<meta property=\"og:description\" content=\"Students who are searching for NCERT MCQ Questions for Chapter 9 Analysis of Financial Statements with Answers Pdf free download are compiled here to get good practice on all fundamentals. 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