Question: 1 ) Trend analysis is a type of vertical analysis, which compares financial data within a single year. True /False 2) The current ratio shows

1 ) Trend analysis is a type of vertical analysis, which compares financial data within a single year. True /False

2)

The current ratio shows the

The quality of the current assets of a company

The profitability of a company

Long term debt-paying ability of a company

Short term debt paying ability of a company

3)

Which one is not the purpose of Financial Projection

Question 5 options:

To project the financial strength of the business against future market fluctuations

To assess future profitability of the business

To take precautionary measures for the Business

To settle the business conflicts with other business concerns

4)

Break even point should be compared with total capacity, to know the

Question 6 options:

sed as well as unused level of production capacity

Future Sales volume

Credit Risk

All of the above

5)

Which one is applicable particularly for internal performance evaluation of a company

Vertical Analysis

Ratio Analysis

Trend Analysis

Both a) and b)

6)

Explain the use and importance of ratio analysis in the context of business decision making

7)

ABC co. is planning to sell 200,000 units for CAD 4 per unit. The contribution margin ratio is 25%. If ABC will break even at this level of sales, what are the fixed costs?

Question 10 options:

CAD 100,000

CAD 160,000

CAD 200,000

None of the above

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