This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 1 Question Paper Financial Statement Analysis (CFA560): July 2008 Answer all 70 questions. Marks are indicated against each question. Total Marks : 100 1. The three basic elements in the balance sheet of a company are (a) Assets, liabilities and preference share capital (b) Assets, liabilities and retained earnings (c) Assets, liabilities and shareholders’ equity (d) Assets, liabilities and revenues (e) Assets, liabilities and excess of revenue over expenses. (1 mark) <Answer > 2. “The change in equity of a business enterprise, during a period, from transactions and other events and circumstances from the non owner sources” is known as (a) Comprehensive income (b) Sundry assets (c) Sundry liabilities (d) Investments by owners (e) Distributions to owners. (1 mark) <Answer > 3. The balance sheet gives information regarding the (a) Results of operations of the firm for a particular period (b) Financial position of the firm during a particular period (c) Profit earning capacity of the firm for a particular period (d) Financial position of the firm on a particular date (e) Operating efficiency of the firm on a particular date. (1 mark) <Answer > 4. Which of the following is equal to the probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events? (a) Revenues (b) Gains (c) Losses (d) Liabilities (e) Assets. (1 mark) <Answer > 5. Preparation of income statement is governed by the (a) Accrual principle (b) Consistency principle (c) Cost principle (d) Matching principle (e) Going concern principle. (1 mark) <Answer > 6. An interest coverage ratio of 6 indicates that (a) Sales are 6 times of interest expense (b) Profit after tax is 6 times of interest expense (c) Profit before tax is 6 times of interest expense (d) Earnings before interest and taxes is 6 times of interest expense (e) Profit after tax is equal to 1/6 th of interest expense. (1 mark) <Answer > 7. In common size analysis the items in the income statement are expressed as percentage of (a) Gross profit (b) Net sales (c) Total expenses (d) Selling and distribution expenses (e) Net profit. (1 mark) <Answer > 2 8. Gross profit ratio can be calculated from the (a) Income statement (b) Balance Sheet (c) Funds flow statement (d) Cash flow statement (e) Directors’ report. (1 mark) <Answer > 9. The following data was extracted from the books of Write Ltd., for the year 2007-08: Particulars Rs. Credit sales 73,000 Average account receivables 11,000 The average collection period is (assume 365 days in a year) (a) 50 days (b) 52 days (c) 55 days (d) 58 days (e) 60 days. (2 marks ) <Answer > 10 . The following data pertains to Harita Ltd., for the period ended March 31, 2008: Particulars Cost of goods sold Rs.12,00,000 Stock turnover ratio 6 times Closing stock Rs.2,50,000 The value of opening stock was (a) Rs.1,50,000 (b) Rs.2,00,000 (c) Rs.4,00,000 (d) Rs.4,70,000 (e) Rs.3,60,000. (2 marks ) <Answer > 11 ....
View Full Document
This note was uploaded on 07/20/2010 for the course ICFAI CFA taught by Professor Cfa during the Fall '09 term at Indian School of Business.
- Fall '09