Analysis of financial statements MCQ Question Answers suitable for CUET 2025 from Class 12 Accountancy Chapter 4

To score full marks in the CUET 2025 Accountancy exam, Practice Class 12 Accountancy Chapter 4 Analysis of financial statements MCQ Test any number of times free on our website. These questions have been created by our experts from the latest Class 12 Accountancy Syllabus and as per latest exam pattern. Multiple Choice Questions (MCQs) are a type of objective assessment in which a person is asked to choose one or more correct answers from a list of available options. An MCQ presents a question along with several possible answers. Most of the exams in India including the CUET exam conduct an online test to check your knowledge.

Class 12 Accountancy Chapter 4 MCQs

1. The process of critical _________ of the financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm is called ‘Financial Statement Analysis’
a.
b.
c.
d.

2. The following are the reasons that advocate in favour of Financial Analysis.
a.
b.
c.
d.

3. By Analysing Common Size Statements Which Analysis can be Processed?
a.
b.
c.
d.

4. The financial statements of a business enterprise include:
a.
b.
c.
d.

5. Whose analysis will evaluate the ability of the company to meet its short-term obligations & firm’s liquidity position?
a.
b.
c.
d.

6. Common Size Statement is of immense use for ______________.
a.
b.
c.
d.

7. Comparative Statements are also known as:
a.
b.
c.
d.

8. Who are also interested in the firm’s capital structure to ascertain its influences on firm’s earning, Risk and Also evaluate the efficiency of the management and determine whether a change is needed or not?
a.
b.
c.
d.

9. Using the previous years’ data of a business enterprise, __________can be done to observe the percentage changes over time in the selected data.
a.
b.
c.
d.

10. Conclusion base on financial analysis may be non-reliable because financial statement is based on certain concepts and conventions. This Statement Can be Limitation of __________.
a.
b.
c.
d.

11. In Which analysis, each item in the statement is stated as a percentage of the aggregate, or revenue from operations of which that item is a part.
a.
b.
c.
d.

12. The term Financial Analysis includes both ____________.
a.
b.
c.
d.

13. Limitation of Financial Analysis.
a.
b.
c.
d.

14. Whose analysis help in studying accounting data so as to determine the continuity of the operating policies, investment value of the business, credit ratings and testing the efficiency of operations?
a.
b.
c.
d.

15. ___________ describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm.
a.
b.
c.
d.

16. The main and sole Objective of Analysis of financial statements is to
a.
b.
c.
d.

17. This is Not a feature of Trend Analysis
a.
b.
c.
d.

18. Trend analysis is important because, with its _________ view, it may point to basic changes in the nature of the business
a.
b.
c.
d.

19. The most commonly used tools for financial analysis are:
a.
b.
c.
d.

20. What is Not Incorrect About Common Size Statements?
a.
b.
c.
d.


 

 

To summarize, revising for free using our MCQs on Class 12 Accountancy Chapter 4 Analysis of financial statements is highly beneficial for scoring full marks on the CUET 2025 Accountancy exam. We provide a sophisticated online test platform tailored for unlimited practice through proficiently crafted questions built on the most recent syllabus and exam pattern. Practicing MCQs regularly will boost conceptual understanding as they are significant for objective assessments. Start practicing now to succeed in your CUET 2025 Accountancy exam!

Also See : 

Class 12 Accountancy Part 1

Accounting for share capital MCQs Class 12 Accountancy Chapter 1 (Part 1)

Accounting for partnership: basic concepts MCQs Class 12 Accountancy Chapter 2 (Part 1)

Financial statements of a company MCQs Class 12 Accountancy Chapter 3 (Part 1)

Accounting ratios MCQs Class 12 Accountancy Chapter 5 (Part 1)

Cash flow statement MCQs Class 12 Accountancy Chapter 6 (Part 1)

Class 12 Accountancy Part 2

Accounting for not for profit organisation MCQs Class 12 Accountancy Chapter 1 (Part 2)

Issue and redemption of debentures MCQs Class 12 Accountancy Chapter 2 (Part 2)

Reconstitution of a partnership firm – admission of a partner MCQs Class 12 Accountancy Chapter 3 (Part 2)

Retirement/death of a partner MCQs Class 12 Accountancy Chapter 4 (Part 2)

Dissolution of partnership firm MCQs Class 12 Accountancy Chapter 5 (Part 2)