## Accountancy MCQ Class 12 Chapter 9 | Analysis of Financial Statements | Accountancy Quiz for Class 12 and Other Competitive Exams

Accountancy MCQ Class 12 Chapter 9: Check the below NCERT MCQ Questions for Accountancy MCQ Class 12 Chapter 9 with Answers Pdf free download. Accountancy MCQ Class 12 Chapter 9 Questions for Accountancy with Answers were prepared based on the latest exam pattern. We have provided Accountancy MCQ Class 12 Chapter 9 with Answers to help students understand the concept very well.

We trust that the offered Accountancy MCQs for Class 12 with responses Chapter 9: Analysis of Financial Statements will help you. Assuming you have any questions with respect to CBSE Class 12 Accountancy, Analysis of Financial Statements MCQs, drop a remark underneath, and we will hit you up at the most punctual.

## Accountancy MCQ Class 12 Chapter 9

1. ________ is not a limitation of financial statement analysis.
(a) To measure the financial strength
(b) Affected by window-dressing
(c) Do not reflect changes in the price level
(d) Lack of qualitative analysis

(a) To measure the financial strength

2. Interpretation of Financial Statements includes:
(a) Criticisms and Analysis
(b) Comparison and Trend Study
(c) Drawing Conclusion
(d) All the above

(d) All the above

3. Comparative Statements are also known as :
(a) Dynamic Analysis
(b) Horizontal Analysis
(c) Vertical Analysis
(d) External Analysis

(b) Horizontal Analysis

4. Comparative financial analysis process shows the comparison between the items of which statement?
(a) Balance sheet
(b) Profit and loss statement
(c) Both (a) and (b)
(d) None of the above

(c) Both (a) and (b)

5. Common-size Statement are also known as:
(a) Dynamic Analysis
(b) Horizontal Analysis
(c) Vertical Analysis
(d) External Analysis

(c) Vertical Analysis

6. What is the break-even point, and what does it refer to?
(a) Total costs are more than total sales
(b) Total costs are less than total sales
(c) Total costs are half of the total sales
(d) Total costs are equal to total sales

(d) Total costs are equal to total sales

7. The most commonly used tools for financial analysis are:
(a) Comparative Statements
(b) Common-size Statement
(c) Accounting Ratios
(d) All the above

(d) All the above

8. Which of the following explains the significance of financial analysis?
(a) Ignores qualitative aspect
(b) Judges operational efficiency
(c) Suffers from the limitations of financial statements
(d) It is affected by personal ability and bias of the analysis

(b) Judges operational efficiency

9. For calculating trend percentages any year is selected as:
(a) Current year
(b) Previous year
(c) Base year
(d) None of these

(c) Base year

10. Which of the below options is/are the purpose or objective of financial analysis?
(a) To assess the current profitability of the firm
(b) To measure the solvency of the firm
(c) To assess the short-term and long-term liquidity position of the firm
(d) All of the above

By Team Learning Mantras ## Related post

Economics Quiz Quiz