Accounts MCQ Class 12 : Accountancy MCQs for Class 12 with Answers Chapter 11 “Financial Statements Analysis“. Practicing CBSE RBSE and NCERT Accountancy MCQ Questions for Class 12 with Answers is one of the best ways to prepare for the CBSE Class 12 board exam.
Accountancy MCQs for Class 12 with Answers Chapter 11 Financial Statements Analysis with Answer
Q1. Which analysis is considered as dynamic :
(A) Horizontal Analysis
(B) Vertical Analysis
(C) Internal Analysis
(D) External Analysis
(A) Horizontal Analysis
Q2. Which analysis is considered as static :
(A) Horizontal Analysis
(B) Vertical Analysis
(C) Internal Analysis
(D) External Analysis
(B) Vertical Analysis
Q3. Which analysis is based only on one year’s data :
(A) Cash Flow Statement
(B) Dividend Analysis
(C) Vertical Analysis
(D) Horizontal Analysis
(C) Vertical Analysis
Q4. Main objective of analysis of financial statements is
(A) To know the financial strength
(B) To make a comparative study with other firms
(C) To know the efficiency of management
(D) All of the Above
(D) All of the Above
Q5. Analysis of Financial Statements is significant:
(A) For Creditors
(B) For Managers
(C) For Employees
(D) For all of the above
(D) For all of the above
Q6. Financial analysis becomes significant because it :
(A) Ignores price level changes
(B) Measures the efficiency of business
(C) Lacks qualitative analysis
(D) Is effected by personal bias
(B) Measures the efficiency of business | Accountancy MCQs for Class 12 with Answers Chapter 11
Q7. When bad position of the business is tried to be depicted as good, it is known as ………………………..
(A) Personal Bias
(B) Price Level Changes
(C) Window Dressing
(D) All of the Above
(C) Window Dressing
Q8. Which of the following statements are true
a) All of the options
b) External analysis depends entirely on issued financial statements
c) Interpretation and analysis both are different
d) Financial analysis covers interpretation
a) All of the options
Q9. Importance of Comparative Statement is | Accountancy MCQs for Class 12 with Answers Chapter 11
a) Indicate the trend with respect to the previous year
b) Make the data simple and more understandable
c) All of the options
d) compare the firm performance with the performance of other firm in the same business
c) All of the options
Q10. Which one of the following is not a method/tool of analysis of financial statements?
a. Accounting Ratios
b. Break Even Point
c. Statements of Receipts and Payments
d. Fund Flow Statement
c. Statements of Receipts and Payments
Q11. Feature of financial analysis is to present the data contained in financial statements in
a. Easy form
b. Convenient and rational groups
c. Comparable form
d. All of the above
d. All of the above
Q12. The financial statements of a business enterprise include :
(a) Balance sheet
(b) Statement of Profit and loss account
(c) Cash flow statement
(d) All the above
(d) All the above
Q13. Which of the following is the objective of comparative statements?
a. To make the data simpler and understandable
b. To indicate the trend
c.To help in forecasting
d. All of the above
d. All of the above
Q14. When financial statements of several years are analysed, it is termed as | Accountancy MCQs for Class 12 with Answers Chapter 11
a) None of the options
b) Horizontal analysis
c) Current ratios
d) Vertical analysis
d) Vertical analysis
Q15. Financial analysis can be done with which of the following tool?
(a) Ratio Analysis
(b) Cash Flow Statement
(c) Comparative Statements
(d) All of the above
(d) All of the above
Q16. Analysis of financial statements for two or more years is known as
(a) Horizontal analysis
(b) External analysis
(c) Vertical analysis
(d) Internal analysis
(a) Horizontal analysis
Q17. Which of the following is not an objective of financial statement analysis? Accountancy MCQs for Class 12 with Answers Chapter 11
(a) Efficiency of the Management
(b) Price Level Changes
(c) Profitability of the Enterprise
(d) Solvency of the Enterprise
(b) Price Level Changes
Q18. Who of the following has no financial interest in the analysis of financial statements?
(a) Management
(b) Debtor
(c) Creditor
(d) Investor
(b) Debtor
Q19. Who has the interest in long-term solvency position of the firm? Accountancy MCQs for Class 12 with Answers Chapter 11
(a) Creditors
(b) Bankers providing overdraft facilities
(c) Financial Institutions
(d) Short-term money lenders
(c) Financial Institutions
Q20. Which of the following is not a limitation in the analysis of financial statements?
(a) Ignores Price Level Changes
(b) Window Dressing
(c) Financial performance of the firm
(d) Bias of the Analyst
(c) Financial performance of the firm
Accountancy MCQs for Class 12 Chapter Wise with Answers Pdf Download
Accountancy MCQs for Class 12 Chapter Wise with Answers Pdf Free Download will help you. Accountancy MCQs for Class 12 with Answers Chapter 11 Financial Statements Analysis with Answer
