The key areas of Statement of Financial Positions analysis are
I. Assets ConsistencyÂ
II. Short-Term Solvency
III. Long-Term Financial Stability
IV. Level of Gearing
The following are limitation of Financial Ratio except
Before Ratio Analysis is undertaken, it is essential that the following view points to be considered by credit officer.
I. ManagementÂ
II. Owners or Investors
III. Creditors or Lenders
IV. Analysts
In analysing the credit proposal with DSR 100%, what would be the proper action to be taken by Credit Officer?
Which of the following is not classified as an operating expenses in Statement of Comprehensive Income?
Which of the following is NOT the source of finance to purchase Fixed Assets?
Maintaining Goodwill without any write off is seen as an attempt to
Solvency or Liquidity ratios measure
Understanding borrower's business operating cycle explain
In accounting policies and statement review the following are NOT common red flags EXCEPT
The group of ratio deals with Profitability of the day to day business. A sub-category ratio in this group is
Which of the following is characteristic of good Financial Analysis?
The sales growth of the company increased by 20% from RM1,000,000.00 to RM1,200,000.00 over the year. This is example of
Which of the following would reflect inadequate management quality?
I. High risk financial strategy
II. Diversification into unfamiliar business
III. Dominant owner/manager
IV. Tapping fund in the capital market
Which of the following statements is NOT true with regard Financial Analysis?
Committing to sell or selling without offsetting purchase commitment or ownership is call
In Prospective Analysis of Financial Analysis, the following areas should be addressed except
Which of the following common red flag that can be observed in the financial statements?
The formula for Stock Turnover period is
Which of the following could result in high current ratio?
Which of the following is an operational efficiency ratio?
Combining the Operating and Capital Investment Cycles will enable the credit officers to derive a
Company uses cash to pay Long Term Bond. The effect on current ratio and assets turnover ratio are
Creative accounting is probably the most common business fraud which include
I. Cover up losses
II. Diversion of funds
III. High dividend decreation
IV. Capitalisation of uncoverable expenses
Based on Diagram 2, ...Y... represents
Based on Diagram 1, ...X... represents
The following affects the profits but has no effect on the cash flow of business
Statement of Cash Flow indirect format start with
Understanding the Capital Investment Cycle of borrower's business is equivalent to understanding
I. Estimated costs of the machines
II. estimated economic life spam of the fixed assets
III. Specific assets needed by the borrower
IV. Working Capital Requirements of the business
During loan application, which of the following is likely window dreasing measure adopted by customer?
In analysing management and shareholders risk, the following are important in providing the company's direction and strategic plan are
I. Character of the management
II. Capability of the management
III. Capital provide by the management
IV. Capacity of the management
Which of the following is Integrated Analysis?
When stockholding period increase and Trade Payable period decrease, what happen to the financing gap?
An increase in which of the following items is considered as a source of funds?
Trade related gearing has lower risk than capital expenditure related gearing due to
The standards of comparison used in Ratio Analysis are
I. Results of each ratio over the years
II. Past performance of the company
III. Industry norms
IV. Results and trends
Which of the followings are the pre-requisites of Financial Statements analysis?
I. Understanding borrower's business
II. Business Operating Cycle
III. Capital Investment Cycle
IV. Funding Requirements
The first important characteristic of good Financial Analysis
Fixed Asset Turnover ratio is measurement of assets efficiency based on
Return on Assets Ratio measures
Which of the following can be determined only with Statement of Financial Position?
Which of the following areas is the best considered as part of qualitative analysis?
What is the best reason using EBIT as the numerator when computing ROA compared to other profits measure?
Frequent extension on the maturity of the trade bills may indicate
Which of the following group of activities are reflected in the Statement of Cash Flow?
The analysis of over-gearing can be influenced by various factors such as
I. Types of gearing
II. Relative change in gearing
III. Track record
IV. Economic Environment
Which of the following is a correct relative comparison of characteristic of a good financial analysis?
May 30, 2026
