Practice Financial Statement and Ratio Analysis Questions and Answers

• All its JV IT Ltd has total current assets worth ₹9,00,000, of which inventory is ₹2,00,000. Current liabilities stand at ₹5,60,000. What will be its...
• GB Ltd is preparing its Cash Flow Statement. Which of the following will be recorded under the investing activity?
• Which of the following is not a source of funds for a company?
• Schedule III Part 2 of the Companies Act, 2013, pertains to the Format of ______?
• Calculate the EBIT of the company given the following details: Sales: ₹20,00,000  Cost of Goods Sold: ₹14,00,000  Operating Expenses: ₹3,00,000  I...
• Use Direct method to calculate the net cash from operations of the company given the following transactions?  Sales in the year: ₹6,50,000  Cash receiv...
• Based on the below information, calculate the net cash flow of the company from operating activities?  Net Profit = ₹1,80,000  Depreciation = ₹40,000...
• VG Ltd shared the following details from its Balance sheet at the end of the year. What is its Current Ratio?  ...
• GH Ltd took a term loan of Rs.24 crore for a period of 20 years to be repaid in equal annual instalments. The interest is 10% p.a. on reducing balance. The...
• A company has a Debt-to-Equity ratio of 2:1. It purchases a new plant for ₹5,00,000, financing it entirely by taking a long-term loan. What will be the n...
• Given: Net Profit ₹4,00,000; Tax Rate 30%; Equity Share Capital ₹10,00,000 (Face Value ₹10). The Return on Equity (ROE) is:
• The ratio that measures the efficiency with which a firm utilizes its assets to generate sales is:
• If you want to understand the financial performance of a company over a specific accounting period, which of the following financial statement will be usef...
• An entity, other than a financial institution, receives the dividends from the shares it owns in certain companies. The entity, while preparing its cash fl...
• Which of the following is correct about the liquidity position of a company whose current ratio is 2.5, and quick ratio is only 0.9? 
• A company took a term loan of Rs.50 lakh from the bank in December 2025. If the loan has to be repaid in 5 equal yearly instalments starting from December ...
• Which of the following best differentiates impairment from depreciation?
• Which of the following is likely to increase the trade receivables collection period? 
• A company earned a Net Profit of ₹1,00,000. If the Net Sales is ₹12,50,000, out of which ₹10,00,000 is cash sales and remaining is credit sales, what...
• Under which of the following head will repayment of loan be shown in a cash flow statement?
• Under the Companies Act, there are specific regulations governing the utilization of the amount received as premium on securities. These funds, often recor...
• The business organization prepares the set of financial statements. Which option is not a part of financial statement?