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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
Financial Analysis can be used forA. Securities Analysis.B. Credit Analysis.C. Dividend Decisions.D. All of these. |
| Answer» Correct Answer - d | |
| 102. |
Which analysis is considered as dynamic?A. Horizontal AnalysisB. Vertical AnalysisC. Internal AnalysisD. External Analysis |
| Answer» Correct Answer - a | |
| 103. |
The purpose of analysis of financial statements for short - term creditors isA. To determine whether their dues will be paid when due.B. To determine whether their principals and the interest thereon will be when due.C. To determine whether they should buy the shares.D. None of the above. |
| Answer» Correct Answer - a | |
| 104. |
Under which tool of financial analysis, `100%` is taken as base and all other related figures are expressed as a percentage of base?A. Comparative Statement.B. Common - size Statement.C. Ratio Analysis.D. None of these. |
| Answer» Correct Answer - b | |
| 105. |
Which of the following is not a limitation of Financial Statement Analysis ?A. Ignores the Qualitative ElementsB. Not free from personal biasC. Intra - firm comparisonD. Ignores the price level changes |
| Answer» Correct Answer - c | |
| 106. |
Comparison of actual values of one firm with those another firm belonging to the same industry isA. Inter- firm Comparison.B. Intra- firm Comparison.C. Pattern Comparison.D. None of these. |
| Answer» Correct Answer - a | |
| 107. |
The excess amount which the firm gets on selling its business over and above the net value isA. Surplus.B. Super profits.C. Reserve.D. Goodwill. |
| Answer» Correct Answer - d | |
| 108. |
Which of the following is not a method of valuing goodwill?A. Average Profit MethodB. Super Profit MethodC. Capitalisation MethodD. Discounted Cash Flow Method |
| Answer» Correct Answer - d | |
| 109. |
Which of the following factors decreases the value of goodwill?A. Favourable LocationB. Favourable ContractsC. Customer SatisfactionD. Continuously incurring losses |
| Answer» Correct Answer - d | |
| 110. |
In the event of change in profit - sharing ratio, Workmen Compensation Reserve appearing in the Balance Sheet is transferred to Capital Accounts of partnersA. after providig for claim of workmen , if any.B. igonoring the claim of workmen, if any.C. Both (a) and (b)D. None of these. |
| Answer» Correct Answer - a | |