Please refer to the MCQ Questions for Class 12 Accountancy Chapter 4 Analysis of Financial Statement with Answers. The following Analysis of Financial Statement Class 12 Accountancy MCQ Questions has been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Accountancy with Answers for all chapters in your NCERT Class 12 Accountancy book.
Analysis of Financial Statement Class 12 MCQ Questions with Answers
See below Analysis of Financial Statement Class 12 Accountancy MCQ Questions, solve the questions and compare your answers with the solutions provided below.
Question.Which analysis is considered as Static?
(a) Horizontal Analysis
(b) vertical Analysis
(c) internal Analysis
(d) external Analysis
Answer
B
Question.Financila 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
Answer
B
Question.Which Analysis is based on one year’s data?
(a) Horizontal Analysis
(b) vertical Analysis
(c) Cash Flow Statement
(d) Dividend Analysis
Answer
B
Question.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
Answer
D
Question.Analysis of Financial Statement is significant
(a) For creditors
(b) For Managers
(c) For employees
(d) All the above
Answer
D
Question.When bad position of the business is tried to be depicted as good it is known as
(a) Personal bias
(b) Pricelevel changes
(c) Window dressing
(d) All the above
Answer
C
Question.Main limitation of Analysis of Financial Statement is
(a) Affected by window dressing
(b) Difficulty in forecasting
(c) Donot reflect changes in price level
(d) All the above
Answer
D
Question.Main Objective of Analysis of Financial Statement is
(a) To know the financial strength
(b) To make a comparative study with other firms
(c) To know ther efficiency of management
(d) All the above
Answer
D
Question.Financial Analysis becomes useless because it
(a) Measures the profitability
(b) Measures the solvency
(c) Lacks qualitative analysis
(d) Makes a comparative study
Answer
C
Question.Which analysis is considered as dynamic?
(a) Horizontal Analysis
(b) vertical Analysis
(c) internal Analysis
(d) external Analysis
Answer
A
