Please refer to Analysis of Financial Statement MCQ Questions Class 12 Accountancy below. These MCQ questions for Class 12 Accountancy with answers have been designed as per the latest NCERT, CBSE books and syllabus issued for the current academic year. These objective questions for Analysis of Financial Statement will help you to prepare for the exams and get more marks.
Analysis of Financial Statement MCQ Questions Class 12 Accountancy
Please see solved MCQ Questions for Analysis of Financial Statement in Class 12 Accountancy. All questions and answers have been prepared by expert faculty of standard 12 based on latest examination guidelines.
MCQ Questions Class 12 Accountancy Analysis of Financial Statement
Question. Which analysis is considered as Static?
(a) Horizontal Analysis
(b) vertical Analysis
(c) internal Analysis
(d) external Analysis
Answer
A
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. 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
Question6. 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. 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. Which analysis is considered as dynamic?
(a) Horizontal Analysis
(b) vertical Analysis
(c) internal Analysis
(d) external Analysis
Answer
A
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
Question. Which analysis is considered as dynamic?
(a) Horizontal Analysis
(b) vertical Analysis
(c) internal Analysis
(d) external Analysis
Answer
A
Question. Which analysis is considered as Static?
(a) Horizontal Analysis
(b) vertical Analysis
(c) internal Analysis
(d) external Analysis
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. 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. 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. 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. 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. 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. Analysis of Financial Statement is significant
(a) For creditors
(b) For Managers
(c) For employees
(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
