Trend analysis - class-XII
Description: trend analysis | |
Number of Questions: 34 | |
Created by: Manjit Singh | |
Tags: financial statement analysis accountancy analysis of financial statements |
Financial statement analysis helps to identify the areas where the managers have been efficient and the areas where they have been lacking behind.
In periods of inflation, accounting depreciation is ______________ relative to replacement cost and real economic income is ______________.
Financial Analysis does not help the users of the financial statements to understand the complicated matters in simplified manner.
On the basis of financial analysis, earning capacity of the enterprise cannot be assessed or computed.
Which of the following are significance of Financial Analysis?
Past financial statement analysis helps in assessing developments in future, especially in the next year.
Inter-firm comparison becomes difficult with the help of financial analysis.
Financial analysis helps the users of the financial statements to understand the complicated matter in a simplified manner.
Financial data can be made more comprehensive by _______________.
Which of the following is the limitation of financial statement analysis?
Long-term and short-term solvency of the enterprise can be assessed on the basis of ___________ statement analysis.
Window dressing is one of the limitation of financial analysis.
Which of the following is not incorporated in Capital Budgeting?
Which of the following is not followed while taking Capital budgeting decisions?
Which of the following is not true with reference to capital budgeting?
Which of the following is not true for capital budgeting?
Capital Budgeting Decisions are __________.
Risk in Capital budgeting implies _____________.
Feasibility Set Approach to Capital Rationing can be applied in ____________.
In case of the indivisible projects, which of the following may not give the optimum result?
Real rate of return is equal to__________.
Risk in capital budgeting implies that the decision-maker knows _______ of the cash flows.
A proposal is not a capital budgeting proposal if it____________.
Profitability Index, when applied to Divisible Projects, impliedly assumes that_____________.
Evaluation of capital budgeting proposals is based on cash flows because_____________.
NPV of a proposal, as calculated under Risk Adjusted Discount Rate(RADR) & Real Certainty Equivalent(CE) Approach will be __________.
What factors increase the riskiness of a Capital budgeting Project?
Risk-aversion of an investor can be measured by______________.
For calculating trend percentage, which of the following formula is used?
The most commonly used tools for financial analysis are _______________.
Select the correct statement.
Which of the following statements are false?
A) When all the figures in a balance sheet are stated as percentage of the total, it is termed as horizontal analysis.
B) When financial statements of several years are analyzed, it is termed as vertical analysis.
C) Vertical Analysis is also termed as dynamic analysis.
A company discloses the following information in relation to its receivables in the notes to its financial statements.
Gross amount receivable - Rs. 4,800
Provision for doubtful debts - Rs. 360
Net Carrying amount of receivable - Rs. 4,400
Which one of the following is the maximum credit risk that it must also disclose in the notes to comply with IFRS 7?
A firm has an Return on Assets (ROA) of 14%, a debt/equity ratio of 0.8, a tax rate of 35%, and the interest rate on the debt is 10%. What is the firm's Return on Equity (ROE)?