RELIANCE FINANCIAL ANALYSIS 1.|ACTUAL COMPLETE
QUESTIONS AND VERIFIED ANSWERS|LATEST 2026/2027
Introduction
**Reliance Industries Limited (RIL) covers topics including financial
statements, profitability, liquidity, leverage, efficiency, cash flow,
valuation, and interpretation of ratios. Recent RIL annual-report figures
are incorporated where relevant; for example, FY2025-26 consolidated
revenue was reported at ₹11,75,919 crore, EBITDA at ₹2,07,911 crore,
and PAT at ₹95,754 crore. ([Reliance Industries Limited][1])
**1. What is the primary purpose of financial analysis?**
A. To prepare advertisements
B. To evaluate a company's financial performance and position
C. To determine employee attendance
D. To design products
**Answer: B**
**2. Which financial statement reports assets, liabilities, and equity?**
A. Income statement
B. Cash-flow statement
C. Balance sheet
D. Statement of changes in production
**Answer: C**
**3. Revenue represents:**
A. Income generated from business activities
B. Total liabilities
,C. Shareholders' equity only
D. Depreciation expense
**Answer: A**
**4. EBITDA stands for:**
A. Earnings Before Interest, Dividends, Tax and Assets
B. Earnings Before Income, Debt, Tax and Amortization
C. Earnings Before Interest, Depreciation, Taxes and Assets
D. Earnings Before Interest, Taxes, Depreciation and Amortization
**Answer: D**
**5. Which ratio primarily measures short-term liquidity?**
A. Current ratio
B. Debt-to-equity ratio
C. ROE
D. Net profit margin
**Answer: A**
**6. A higher current ratio generally indicates:**
A. Lower liquidity
B. Greater ability to meet short-term obligations
C. Higher depreciation
D. Lower revenue
**Answer: B**
**7. The basic current ratio is calculated as:**
, A. Current assets ÷ Current liabilities
B. Current liabilities ÷ Current assets
C. Total assets ÷ Equity
D. Net income ÷ Revenue
**Answer: A**
**8. Net profit margin measures:**
A. Debt relative to assets
B. Inventory efficiency
C. Profit earned from each unit of revenue
D. Cash relative to liabilities
**Answer: C**
**9. If revenue rises while costs remain unchanged, profit will
generally:**
A. Increase
B. Decrease
C. Become zero
D. Remain legally fixed
**Answer: A**
**10. Which item is normally classified as a current asset?**
A. Land
B. Long-term investment
C. Inventory
D. Buildings
QUESTIONS AND VERIFIED ANSWERS|LATEST 2026/2027
Introduction
**Reliance Industries Limited (RIL) covers topics including financial
statements, profitability, liquidity, leverage, efficiency, cash flow,
valuation, and interpretation of ratios. Recent RIL annual-report figures
are incorporated where relevant; for example, FY2025-26 consolidated
revenue was reported at ₹11,75,919 crore, EBITDA at ₹2,07,911 crore,
and PAT at ₹95,754 crore. ([Reliance Industries Limited][1])
**1. What is the primary purpose of financial analysis?**
A. To prepare advertisements
B. To evaluate a company's financial performance and position
C. To determine employee attendance
D. To design products
**Answer: B**
**2. Which financial statement reports assets, liabilities, and equity?**
A. Income statement
B. Cash-flow statement
C. Balance sheet
D. Statement of changes in production
**Answer: C**
**3. Revenue represents:**
A. Income generated from business activities
B. Total liabilities
,C. Shareholders' equity only
D. Depreciation expense
**Answer: A**
**4. EBITDA stands for:**
A. Earnings Before Interest, Dividends, Tax and Assets
B. Earnings Before Income, Debt, Tax and Amortization
C. Earnings Before Interest, Depreciation, Taxes and Assets
D. Earnings Before Interest, Taxes, Depreciation and Amortization
**Answer: D**
**5. Which ratio primarily measures short-term liquidity?**
A. Current ratio
B. Debt-to-equity ratio
C. ROE
D. Net profit margin
**Answer: A**
**6. A higher current ratio generally indicates:**
A. Lower liquidity
B. Greater ability to meet short-term obligations
C. Higher depreciation
D. Lower revenue
**Answer: B**
**7. The basic current ratio is calculated as:**
, A. Current assets ÷ Current liabilities
B. Current liabilities ÷ Current assets
C. Total assets ÷ Equity
D. Net income ÷ Revenue
**Answer: A**
**8. Net profit margin measures:**
A. Debt relative to assets
B. Inventory efficiency
C. Profit earned from each unit of revenue
D. Cash relative to liabilities
**Answer: C**
**9. If revenue rises while costs remain unchanged, profit will
generally:**
A. Increase
B. Decrease
C. Become zero
D. Remain legally fixed
**Answer: A**
**10. Which item is normally classified as a current asset?**
A. Land
B. Long-term investment
C. Inventory
D. Buildings
