Practice Set - 2 | Practice Set | NISM Series XV: Research Analyst Certification Examination

Question 1

If liabilities grow faster than assets, what is the implication?

Question 2

What is the impact of increasing depreciation rate?

Question 3

A company’s current ratio is significantly higher than industry peers. What could this indicate?

Question 4

A company with high ROE and high debt is likely:

Question 5

Which of the following items will NOT impact cash flow from operating activities?

Question 6

Which component of financial statements provides qualitative insights?

Question 7

Which situation reflects aggressive accounting?

Question 8

Which activity would increase investing cash outflows?

Question 9

A company has negative operating cash flow but positive investing cash flow. What does this indicate?

Question 10

Which ratio indicates ability to service debt comfortably?

Question 11

A company reports increasing profits every year but declining operating cash flows. What is the most appropriate inference?

Question 12

Which ratio is most sensitive to accounting policy changes?

Question 13

If a company delays payments to suppliers, what is the impact on cash flow?

Question 14

Which scenario improves ROE without improving business fundamentals?

Question 15

Which situation indicates potential earnings manipulation?

Question 16

Which component of DuPont analysis increases ROE without improving operational efficiency?

Question 17

Which financial statement item is most relevant to assess solvency?

Question 18

If a company has high EBITDA but low net profit, which factor is most likely responsible?

Question 19

If a company improves asset turnover, what happens?

Question 20

Which indicator is most useful in detecting liquidity crunch?

Question 21

If a company capitalizes its expenses instead of expensing them, what will be the immediate impact?

Question 22

Which factor is critical while comparing companies using ratios?

Question 23

If a company shows strong operating cash flow but weak profit margins, what could be the reason?

Question 24

A sudden increase in profit margin without revenue growth may indicate:

Question 25

A company shows high profits but consistently negative free cash flow. What is the likely issue?

Question 26

If inventory turnover is declining, what does it suggest?

Question 27

Which financial statement is most useful to assess liquidity risk?

Question 28

Which of the following is a red flag in financial analysis?

Question 29

Which scenario suggests strong financial discipline?

Question 30

Practice Set - 2