Class 12 Accountancy MCQs Comparative Statements
All these MCQs are based on Examination for the practice by the students to prepare for final exams.
- Comparative statements are also known as:
a) Dynamic analysis
b) Horizontal analysis
c) Vertical analysis
d) External analysis
2. Common size analysis is also known as ………. Analysis:
a) Dynamic analysis
b) Horizontal analysis
c) Vertical analysis
d) External analysis
3. Fixed assets of a company increased from ₹10,00,000 to ₹12, 00,000. The percentage change is
a) 20%
b) 33.3%
c) 25%
d) 40%
4. Which statement compares the assets and liabilities of a current year with that of previous year
a) Common size balance sheet
b) Comparative balance sheet
c) Common size income statement
d) Comparative statement of profit and loss
5. Which of the following depicts the operating result of more than one accounting period so that changes in absolute amount as well as in terms of percentage may be known.
a) Common size balance sheet
b) Comparative balance sheet
c) Common size income statement
d) Comparative statement of profit and loss
6. While preparing common- size income statement, each item of income statement is expressed as percentage of
a) Revenue from operations
b) Net Revenue from Operations
c) Total income
d) Profit before tax.
7. Assertion - Comparative balance sheet is horizontal analysis of balance sheet.
Reason - In Comparative balance sheet each item of Assets and liabilities is analysed vertically for two or more accounting periods
In the context of above two statements, which of the following is correct?
a) Assertion and Reason are correct but the Reason is not the correct explanation of Assertion
b) Both Assertion and reason are correct and the Reason is the correct explanation of Assertion.
c) Assertion is correct but Reason is not the correct.
d) Both Assertion and Reason are incorrect.
8. If Current year Revenue from Operations is ₹7,00,000 and percentage increase depicted by Comparative Statement of Profit and Loss is 40%, the amount of Revenue from Operations of the previous year was:
a) ₹6,00,000
b) ₹5,00,000
c) ₹8,00,000
d) ₹4,20,000
9. Which of the following statements are false?
A - Vertical Analysis is conducted for one accounting period.
B - Horizontal Analysis is useful in cross-sectional analysis.
C - Comparative Statements ignore qualitative factors.
a) Both A and B
b) Both A and C
c) Both B and C
d) All three A, B and C
10. Common Size Statement always needs statements of two consecutive years:
a) True
b) False
c) Sometimes
d) Never
More questions will be added from time to time.
Class 12 Accountancy MCQs Comparative Statements - Answers
- b) Horizontal analysis
- c) Vertical analysis
- a) 20%
- b) Comparative balance sheet
- d) Comparative statement of profit and loss
- b) Net Revenue from Operations
- c) Assertion is correct but Reason is not the correct.
- b) ₹5,00,000
- a) Both A and B
- b) False
Class 12 Accountancy MCQs Financial Statements Analysis