Financial Statement Analysis MCQs with Answers
Here you will find important MCQs with Answers
Which of the following is a recurring item?
Which of the following statements is incorrect?
Which of the following would be classified as an extraordinary item on the income statement?
Management is a user of financial analysis. Which of the following comments does not represent a fair statement as to the management perspective?
If assets are $40,000 and stockholders’ equity is $10,000, how much are liabilities?
Which party has the primary responsibility for the financial statements?
If a firm has a high current ratio but a low acid-test ratio, one can conclude that:
Which of the following items would be classified as operating revenue or expense on an income statement of a manufacturing firm?
A figure from this year’s statement is compared with a base selected from the current year.
Which of the following is true when a cash dividend is declared and paid?
Which of the following is true when a 10% stock dividend is declared and distributed?
Selected year-end data for Bayer Company are as follows: Current liabilities $600,000 Acid-test ratio 2.5 Current ratio 3.0 Cost of sales $500,000 Bayer Company’s inventory turnover based on these year-end data is:
From the point of view of analysis, which classification of an audit opinion indicates that the financial statements carry the highest degree of reliability.
Which analysis compares each amount with a base amount for a selected base year?
If the investor company owns 30% of the stock of the investee company and the investee company reports profits of $150,000, then the investor company reports equity income of :
A firm requires short-term funds to cover payroll expenses. These funds can come from:
The primary objective in the management of accounts receivable is
Investment instruments used to invest temporarily idle cash balances should have which of the following characteristics?
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