Class 10 IFM Unit 9 Concepts & Modes of Analysis
This article will help you to get Class 10 IFM Unit 9 Concepts & Modes of Analysis for your 2026 Boards exams.
30 MCQs – Unit 9: Concepts & Modes of Analysis (with Answers)
1. Time Value of Money means:
a) Money loses value over time
b) Money today is worth more than money in the future
c) Money grows only in banks
d) Money never changes value
Answer: b
2. Simple Interest is calculated on:
a) Principal only
b) Principal + Interest
c) Sales
d) Profit
Answer: a
3. Compound Interest is calculated on:
a) Only principal
b) Principal + accumulated interest
c) Debts
d) Assets only
Answer: b
4. Effective Annual Return is used to:
a) Calculate discount
b) Compare true annual return
c) Find tax
d) Calculate depreciation
Answer: b
5. Annual Report contains:
a) Company holidays
b) Income & Position statements
c) TV advertisement details
d) Employee birthdays
Answer: b
6. Income Statement shows:
a) Assets & liabilities
b) Profit or loss of a business
c) Cash withdrawals
d) Only expenses
Answer: b
7. Position Statement is also known as:
a) Balance Sheet
b) Cash flow statement
c) Bank reconciliation
d) Ledger
Answer: a
8. Assets are:
a) Liabilities
b) Resources owned by the company
c) Only cash
d) Debts only
Answer: b
9. Liabilities represent:
a) Resources owned
b) Obligations owed by the business
c) Share capital
d) Expenses only
Answer: b
10. Secured loans are backed by:
a) Guesswork
b) Collateral
c) Lottery ticket
d) Phone number
Answer: b
11. Unsecured loans are given:
a) Against collateral
b) Without collateral
c) Only to companies
d) Against property
Answer: b
12. Net Block means:
a) Total expenses
b) Gross block – depreciation
c) Profit margin
d) Fixed deposits
Answer: b
13. Gross Block refers to:
a) Total fixed assets before depreciation
b) Net profit
c) Equity
d) Total liabilities
Answer: a
14. Fund Sources include:
a) Only profit
b) Borrowings, equity, internal funds
c) Only debtors
d) Only sales
Answer: b
15. Fund Application represents:
a) Payments to employees
b) How funds are used (assets, expenses)
c) Only dividends
d) Only liabilities
Answer: b
16. Which statement shows the financial position?
a) Trial balance
b) Balance Sheet
c) Cash Memo
d) Voucher
Answer: b
17. Which one is NOT an accounting term?
a) Assets
b) Liability
c) Depreciation
d) Farming
Answer: d
18. Depreciation is a:
a) Loss of value in fixed assets over time
b) Increase in sales
c) Type of liability
d) Increase in profit
Answer: a
19. Which of the following is a current asset?
a) Land
b) Machinery
c) Inventory
d) Debentures
Answer: c
20. Which of the following is a current liability?
a) Share capital
b) Bank loan (long term)
c) Creditors
d) Reserves
Answer: c
21. Time Value of Money helps in:
a) Comparing salaries
b) Understanding compounding
c) Buying products
d) Reducing working hours
Answer: b
22. When compounding frequency increases, future value:
a) Decreases
b) Remains same
c) Increases
d) Becomes zero
Answer: c
23. Interest earned on interest is:
a) Simple interest
b) Compound interest
c) Sales interest
d) Cash discount
Answer: b
24. Balance Sheet includes:
a) Income & expenses
b) Assets & liabilities
c) Cash receipts only
d) Inventories only
Answer: b
25. “Fund sources” do NOT include:
a) Borrowings
b) Share capital
c) Retained earnings
d) Grocery expenses
Answer: d
26. Operating expenses appear in:
a) Income Statement
b) Balance Sheet
c) Notes only
d) Cash book
Answer: a
27. Time Value of Money is used for:
a) Calculating loan EMIs
b) Decorating offices
c) Printing balance sheets
d) Filing invoices
Answer: a
28. If interest is compounded annually, it means:
a) Interest added once a year
b) No interest added
c) Interest added every second
d) Interest added monthly
Answer: a
29. A company requiring funds for expansion will record it under:
a) Fund application
b) Fund source
c) Depreciation
d) Operating cost
Answer: a
30. The main purpose of an Annual Report is to:
a) Entertain customers
b) Show financial performance to stakeholders
c) Provide holiday plans
d) Advertise products
Answer: b
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