Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 11 Financial Statements Analysis. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Accountancy Financial Statements Analysis MCQs Pdf with Answers to know their preparation level.
Financial Statements Analysis Class 12 Accountancy MCQs Pdf
Multiple Choice Questions
Select the best alternate and check your answer with the answers given at the en.d of the book.
1. 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
Answer: D
2. Which analysis is considered as dynamic :
(A) Horizontal Analysis
(B) Vertical Analysis
(C) Internal Analysis
(D) External Analysis
Answer
Answer: A
3. Which analysis is considered as static :
(A) Horizontal Analysis
(B) Vertical Analysis
(C) Internal Analysis
(D) External Analysis
Answer
Answer: B
4. Which analysis is based only on one year’s data :
(A) Cash Flow Statement
(B) Dividend Analysis
(C) Vertical Analysis
(D) Horizontal Analysis
Answer
Answer: C
5. 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
Answer
Answer: D
6. Analysis of Financial Statements is significant:
(A) For Creditors
(B) For Managers
(C) For Employees
(D) For all of the above
Answer
Answer: D
7. 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
Answer
Answer: B
8. 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
Answer
Answer: C
9. For whom the analysis of financial statements is not significant?
(A) Investor
(B) Government
(C) Ambassador of India
(D) Company’s Employee
Answer
Answer: C
10. Main limitation of analysis of financial statements is
(A) Affected by window dressing
(B) Difficulty in forecasting
(C) Do not reflect changes in price level
(D) All of the Above
Answer
Answer: D
11. Which of the following is not a limitation of analysis of financial statements?
(A) Affected by personal bias
(B) To know the financial strength
(C) Lack of Qualitative Analysis
(D) Based on accounting concepts
Answer
Answer: B
12. Financial analysis become useless because it:
(A) Measures the profitability
(B) Measures the Solvency
(C) Lacks Qualitative Analysis
(D) Makes a comparative study
Answer
Answer: C
13. Parties interested in financial analysis are :
(A) Investors
(B) Government
(C) Financial Institutions
(D) All of the Above
Answer
Answer: D
14. Main limitation of financial analysis is :
(A) To know earning capacity
(B) To know financial strength
(C) Do not reflect changes in price level
(D) Comparative study with other firms
Answer
Answer: C
15. For whom analysis of financial statements is not significant?
(A) Political Adviser of Prime Minister
(B) Investors
(C) Management
(D) Financial Institutions
Answer
Answer: A
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