Financial Statements PYQ — Page 4

Match List-I with List-II | List–I | List–II | | ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------- | | (A) Profitability Ratios | (I) This refers to the ratios that are calculated for measuring the efficiency of operations of a business based on effective utilization of resources. | | (B) Activity Ratios | (II) The ability of a business to pay the amount due to stakeholders as and when it is due. | | (C) Liquidity Ratios | (III) The ability to meet its contractual obligations towards stakeholders, particularly towards external stakeholders. | | (D) Solvency Ratios | (IV) It refers to the analysis of profits in relation to revenue from operations or funds (or assets) employed in the business. | Choose the correct answer from the options given below:

Arrange the following in correct sequence of appearance in a cash flow statement (A) Cash and cash equivalents at the end (B) Cash flows from operating activities (C) Cash flows from investing activities (D) Cash flows from financing activities Choose the correct answer from the options given below:

From the following information, calculate net cash inflow or net cash outflow from financing activities: | | April 1, 2016 | March 31, 2017 | |---|---|---| | Long-term Loans | Rs. 2,00,000 | Rs. 2,50,000 | During the year, the company repaid a loan of Rs. 1,00,000.

Which transaction among the following is NOT disclosed in the cash flow statement due to the non-cash nature of the transaction.

Which market conditions enable firms to earn higher profits?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Liquidity Ratio | (I) Inventory Turnover ratio | | (B) Solvency Ratio | (II) Quick Ratio | | (C) Activity (or Turnover) Ratio | (III) Price earning ratio | | (D) Profitability Ratio | (IV) Total asset to debt ratio | Choose the correct answer from the options given below:

Current liabilities does not include:

Excess value of net assets over purchase consideration at the time of purchase of business is credited to

Match List-I with List-II | List-I | List-II | |---|---| | (A) Comparative Statements | (I) These are the statements which indicate the relationship of different items of a financial statement with a common item by expressing each item as a percentage of that common item. | | (B) Common Size Statements: | (II) It is a technique of studying the operational results and financial position over a series of years. | | (C) Trend Analysis | (III) It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm. | | (D) Ratio Analysis | (IV) These are the statements showing the profitability and financial position of a firm for different periods of time in a comparative form to give an idea about the position of two or more periods. | Choose the correct answer from the options given below:

Which statements are true- (A) The financial statements of a business enterprise include cash flow statement. (B) Comparative statements are the form of horizontal analysis. (C) Ratio analysis help business in identifying the problem areas. (D) Financial analysis is used only by the creditors. Choose the correct answer from the options given below:

Amount of Total current liabilities are:

Amount of Total Current Assets are:

Which among the following item does not appear on the balance sheet of a company?

Compute Earning per share from following information | Net profit after tax but before dividend | 1,75,000 | |---|---| | Equity shares of Rs. 10 each | Rs. 7,00,000 | | Dividend declared @15% | | | Market price of a share | Rs.13 |

Match List-I with List-II | List-I | List-II | |---|---| | (A) Measure of liquidity | (I) Return on capital employed | | (B) Measure of earning capacity | (II) Inventory turnover ratio | | (C) Measure of activity of firm's inventory | (III) Profitability ratio | | (D) Measure of Productive efficiency of funds | (IV) Current ratio | Choose the correct answer from the options given below:

The current ratio is 2:1 The impact of goods purchased on credit will

Arrange the following steps in the correct sequence while calculating the cash flow from operating activities: (A) Add in profit deductions already made in the Statement of Profit and Loss on account of non-cash items (B) Calculate Operating Profit before Working Capital changes (C) Deduct additions (incomes) made in the Statement of Profit and Loss on Account of Non-operating items (D) Calculate Net Profit/Loss before Tax and Extraordinary Items Choose the correct answer from the options given below:

'Vertical analysis' is also known as: (A) Ratio Analysis (B) Cash Flow Analysis (C) Comparative Statement Analysis (D) Common Size Statement Analysis Choose the correct answer from the options given below:

Higher turnover ratio means:

Match List-I with List-II | List-I | List-II | |---|---| | (Type of Activity) | (Transaction) | | (A) Operating Activity | (I) Interest Paid on long-term borrowings | | (B) Financing Activity | (II) Cash Credit | | (C) Investing Activity | (III) Rent received on property held as investment. | | (D) Cash Equivalents | (IV) Cash purchases | Choose the correct answer from the options given below:

Liquid Ratio is also known as: (A) Current Ratio (B) Quick Ratio (C) Acid- Test Ratio (D) Working Capital Ratio Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) SHAREHOLDERS FUND | (I) Non-current investments | | (B) CURRENT LIABILITIES | (II) Reserves and Surplus | | (C) CURRENT ASSET | (III) Trade Payables | | (D) FIXED ASSET | (IV) Inventories | Choose the correct answer from the options given below:

Choose the correct statements - (A) The financial statements of a business enterprise include cash flow statements. (B) Common size statements and financial ratios are the two tools employed in vertical analysis. (C) Financial analysis helps an analyst to arrive at a decision. (D) Comparative statements are the form of vertical analysis. Choose the correct answer from the options given below:

Arrange As Appear in Balance sheet as prescribed in part I of schedule III of the Companies act 2013- (A) Non-current liabilities (B) Current liabilities (C) Current Asset (D) Shareholders fund Choose the correct answer from the options given below: