Financial Statements Analysis and Ratio Analysis MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Financial Statements Analysis and Ratio Analysis, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Financial Statements Analysis and Ratio Analysis MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Financial Statements Analysis and Ratio Analysis mcq questions that explore various aspects of Financial Statements Analysis and Ratio Analysis problems. Each MCQ is crafted to challenge your understanding of Financial Statements Analysis and Ratio Analysis principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Financial Statements Analysis and Ratio Analysis MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Financial Statements Analysis and Ratio Analysis. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Financial Statements Analysis and Ratio Analysis knowledge to the test? Let's get started with our carefully curated MCQs!

Financial Statements Analysis and Ratio Analysis MCQs | Page 7 of 10

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Q61.
Which ratio is used to assess the relationship between outstanding claims and claims payable for a life insurance company?
Discuss
Answer: (c).Ratio of Outstanding Claims to Claims payable Explanation:The Ratio of Outstanding Claims to Claims payable is used to assess the relationship between outstanding claims and claims payable for a life insurance company.
Q62.
What does the % of Change in Fair Value Change Account ratio indicate for a life insurance company?
Discuss
Answer: (b).Investment performance Explanation:The % of Change in Fair Value Change Account ratio indicates the investment performance for a life insurance company.
Q63.
What does the Net Retention Ratio (%), in the context of Total Premium, First Premium, Single premium, and Renewal Premium, represent for a life insurance company?
Discuss
Answer: (a).Percentage of premiums retained by the company Explanation:The Net Retention Ratio (%) represents the percentage of premiums retained by the company in the context of Total Premium, First Premium, Single premium, and Renewal Premium.
Discuss
Answer: (a).The percentage of net premiums retained by the company after reinsurance Explanation:The Net Retention Ratio for a life insurance company denotes the percentage of net premiums retained by the company after reinsurance.
Q65.
What is taken into account when computing the Underwriting Balance Ratio for a life insurance company?
Discuss
Answer: (c).Premium deficiency Explanation:When computing the Underwriting Balance Ratio for a life insurance company, premium deficiency is taken into account.
Q66.
What components are considered in the calculation of the Operating Profit Ratio for a life insurance company?
Discuss
Answer: (c).Both a and b Explanation:The calculation of the Operating Profit Ratio for a life insurance company considers both premium deficiency and expenses under the profit and loss account.
Discuss
Answer: (c).The yield on both Gross and Net yield Explanation:The Investment Yield ratio for a life insurance company calculates the yield on both Gross and Net yield.
Q68.
What does the Conservation Ratio for a life insurance company include in its calculation?
Discuss
Answer: (a).Group fund business Explanation:The Conservation Ratio for a life insurance company includes group fund business in its calculation.
Q69.
What accounting ratio is specifically for non-life insurance companies in the context of underwriting results and class-wise performance analysis?
Discuss
Answer: (b).Incurred Claim Ratio Explanation:The Incurred Claim Ratio is specifically for non-life insurance companies in the context of underwriting results and class-wise performance analysis.
Q70.
Which accounting ratios are generally used for the growth, ROI, and solvency analysis of general insurance companies?
Discuss
Answer: (c).Underwriting Ratios Explanation:Underwriting Ratios are generally used for the growth, ROI, and solvency analysis of general insurance companies.