Question
1 ) Trend analysis is a type of vertical analysis, which compares financial data within a single year. True /False 2) The current ratio shows
1 ) Trend analysis is a type of vertical analysis, which compares financial data within a single year. True /False
2)
The current ratio shows the
| The quality of the current assets of a company |
| The profitability of a company |
| Long term debt-paying ability of a company |
| Short term debt paying ability of a company |
3)
Which one is not the purpose of Financial Projection
Question 5 options:
| To project the financial strength of the business against future market fluctuations |
| To assess future profitability of the business |
| To take precautionary measures for the Business |
| To settle the business conflicts with other business concerns |
4)
Break even point should be compared with total capacity, to know the
Question 6 options:
| sed as well as unused level of production capacity |
| Future Sales volume |
| Credit Risk |
| All of the above |
5)
Which one is applicable particularly for internal performance evaluation of a company
| Vertical Analysis |
| Ratio Analysis |
| Trend Analysis |
| Both a) and b) |
6)
Explain the use and importance of ratio analysis in the context of business decision making
7)
ABC co. is planning to sell 200,000 units for CAD 4 per unit. The contribution margin ratio is 25%. If ABC will break even at this level of sales, what are the fixed costs?
Question 10 options:
| CAD 100,000 |
| CAD 160,000 |
| CAD 200,000 |
| None of the above |
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