Practice Set - 3 | Practice Set | NISM Series XV: Research Analyst Certification Examination

Question 1

What does a high quick ratio indicate?

Question 2

If a company increases its dividend payout significantly, what is the likely impact?

Question 3

What happens when inventory levels rise significantly without a matching rise in sales?

Question 4

Which ratio is used to measure long-term solvency?

Question 5

Which of the following is a non-operating income?

Question 6

If a company writes off bad debts, what is the impact?

Question 7

If operating expenses rise faster than revenue, what happens?

Question 8

Which of the following best reflects the true financial strength of a company?

Question 9

Which of the following is a sign of strong operational efficiency?

Question 10

A company shows high sales growth but declining profit margins. What could be the reason?

Question 11

If a company reduces its debt significantly, what is the likely impact on interest coverage ratio?

Question 12

Which ratio indicates how efficiently a company uses its assets to generate profit?

Question 13

Which factor can artificially inflate profits?

Question 14

Which financial metric is least affected by capital structure?

Question 15

Which of the following is most likely to distort financial ratios?

Question 16

Which situation indicates inefficient receivables management?

Question 17

Which item is adjusted while converting net profit to operating cash flow?

Question 18

Which item is NOT part of working capital?

Question 19

If net profit increases but ROE decreases, what could be the reason?

Question 20

Which of the following improves operating cash flow?

Question 21

Which activity is classified under financing activities?

Question 22

Which statement best describes accrual accounting?

Question 23

Which ratio would be most affected by an increase in short-term borrowings?

Question 24

A sudden spike in profits due to asset sale is:

Question 25

Which financial statement is most useful for assessing dividend sustainability?

Question 26

Which action improves net profit margin?

Question 27

Which of the following is most important for long-term investors?

Question 28

A company with high liquidity but low profitability indicates:

Question 29

What does a declining net profit margin indicate?

Question 30

Practice Set - 3