Question : State which of them are true?

A) When ratios of previous years are compared with current years, they are called trend ratios.

B) Trend percentages and trend ratios are used in static analysis.

C) Reliability of financial analysis depends upon the reliability of financial data.
 

Option 1: Both A and B

Option 2: Both A and C

Option 3: Both B and C

Option 4: A, B, C

Question : Which of the following statements are false?

A) When all the figures in a balance sheet are stated as percentage of the total, it is termed as horizontal analysis.

B) When financial statements of one reporting period is analyzed, it is termed as vertical analysis.

C) Vertical Analysis is also termed as dynamic analysis.

Option 1: Both A and B

Option 2: Both A and C

Option 3: Both B and C

Option 4: A, B , C

Question : Capital account is used to
 

Option 1: Financial deficit in the current account
 

Option 2: Absorb surplus of current account
 

Option 3: Both A and B
 

Option 4: Neither A nor B.
 

Question : Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?

Option 1: Ratio Analysis

Option 2: Average Analysis

Option 3: Trend Analysis

Option 4: All of the above

Question : Accounting ratios are an important tool of - 

Option 1: Trial Balance

Option 2: Financial statement analysis and trial balance

Option 3: Financial statement analysis

Option 4: None of the above

Question : Assertion (A): Liquidity Ratios are used to evaluate a firm's long-term financial position.
Reason (R): Liquidity ratios, such as the current ratio and quick ratio, are useful in determining the firm's long-term financial position.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is False

Option 4: Assertions (A) is False and Reason (R) is False.