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Q.1 According to which of the following statements best describes the function of the income statement?
A.
A. It provides information about the financial performance of a company over a period of time.
B.
B. It provides information about the financial position of the company at a specific point in time.
C.
C. It provides information on the cash inflows and outflows of the company.
2.
Q2.The following distinguishes a complex capital structure from a simple capital structure when determining the disclosure of diluted earnings per share: the company having outstanding: the company having outstanding
A.
A) debt securities or convertible securities.
B.
B) warrants, convertible securities, or options.
C.
C) preferred stock, warrants, or options.
3.
Q3.The operating revenues of a company for a reporting period are to be shown on the following financial statements:
A.
A) balance sheet.
B.
B) cash flow statement.
C.
C) income statement.
4.
Q4.Which of the following sentences is an incorrect statement about a limitation of the ratio analysis technique?
A.
A) It is possible for a company to have several divisions that operate in various industries.
B.
B) The majority of businesses throughout the world adhere to the same set of accounting standards.
C.
C) There are no predefined ranges within which specific company ratios must fall in order to be considered acceptable.
5.
Q5.Which of the following is a metric used to assess a company's liquidity?
A.
A) Net Profit Margin.
B.
B) Equity Turnover.
C.
C) Current Ratio.
6.
Q6.Unearned revenue are classified as an
A.
A. Asset.
B.
B. Liability.
C.
C. Owners’ equity.
7.
Q7. According to the classification of the balance sheet, assets and liabilities are divided into the following categories
A.
A. Current or non-current items.
B.
B. Internally generated or acquired.
C.
C. Measured at cost or fair value.
8.
Q8.How would a stock split most likely be reported on the statement of cash flows?
A.
A. Disclosed in the footnotes.
B.
B. Reported in cash flows from operations.
C.
C. Reported in cash flows from financing.
9.
Q9.The operating revenues of a company for a reporting period are to be shown on its financial statements.
A.
A) Income statement.
B.
B) Cash flow statement.
C.
C) Balance Sheet.
10.
Q10. If an analyst wants to look into a company's revenue recognition policies, what will consult the following documents
A.
A. Management discussion and analysis.
B.
B. Financial statement footnotes.
C.
C. Additional supplementary schedules.
11.
Q11.In the context of financial reporting and analysis, which of the following best describes the situation?
A.
A) Financial reporting refers to the manner in which companies present their financial performance, whereas financial analysis refers to the process of using the information to make economic decisions based on the information.
B.
B) Financial reporting refers to the manner in which companies present their financial performance, whereas financial analysis refers to the process of using the information to make economic decisions based on the information.
C.
C) In order to provide information about an entity's financial position that is useful to a wide range of users, financial analysis must first establish the entity's financial position.
12.
Q12.Which of the following is incorrect option as a secondary source of liquidity?
A.
A. Short-term funds
B.
B. Liquidating assets
C.
C. Long term funds
13.
Q13.When the return on equity equation (ROE) is decomposed using the original DuPont system, which three ratios make up the components of the return on equity equation (ROE) are revealed?
A.
A) Gross profit margin, asset turnover, equity multiplier.
B.
B) Net profit margin, asset turnover, equity multiplier.
C.
C) Net profit margin, asset turnover, asset multiplier.
14.
Q14. Is it possible to predict how a reduction in accounts receivable and an increase in accounts payable will affect a company's operating cash flow?
A.
A) Increasing operating cash flow is one thing, and decreasing operating cash flow is quite another.
B.
B) Both of these will result in an increase in operating cash flow.
C.
C) Both of these will have a negative impact on operating cash flow.
15.
Q15.For the purpose of understanding the financial statement effects of capitalization on a company, which of the following statements about capitalization is correct?
A.
A. The company's reported total asset turnover is reduced as a result of capitalization.
B.
B. The company's reported debt-to-asset ratio increases as a result of capitalization.
C.
C. The company's outflows from investing activities are reduced as a result of capitalization.
Quiz Outcomes
1.
Result 1
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