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प्रश्न
Answer the following in brief :
What do you mean by analysis of financial statements?
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उत्तर
It is a process by which financial statements, i.e. Balance Sheet and Income Statement, are analysed to study the business results and the efficiency of the business operations. Also, it helps in the comparison of profitability and financial position of the business over the years or with different firms. Such analysis also facilitates decision-making.
संबंधित प्रश्न
Give one word/term/phrase for the following statement.
An asset which can be converted into cash immediately.
Balance sheet is a nominal account.
State the objectives of financial statements from the view point of a business concern.
State any one limitation of Analysis of Financial Statement.
State and explain any 'four objectives' of financial statement analysis from the business point of view.
State the significance of Analysis of Financial Statements to the ‘Lenders’.
State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.
Select the appropriate answer from the alternatives given below & rewrite the completed statement
Cash proceeds from issue of debentures is _______________.
Select the appropriate answer from the alternatives given below & rewrite the completed statement
Bills payable is _____________.
Select the appropriate answer from the alternatives given below & rewrite the completed statement
From financial statement analysis, the creditors are interested to know _____________.
Give one word/term/ phrase for the following statement
Critical evaluation of financial statement to measure profitability.
What is ‘analysis’ of financial statement?
The Common Size Statement requires _________.
Bill Payable is ___________
Give one word/term/phrase for the following statement.
Activity related to acquisition of long term assets and investment.
State true or false with reason.
Financial Statement includes only Balance Sheet.
State true or false with reason.
The short term deposits are considered as cash equivalent.
Which of the following statements is not true?
Balance sheet provides information about the financial position of a business concern
Which of the following are not tools of Financial Analysis?
- Cash Flow Statement
- Income Statement
- Balance Sheet
- Ratio Analysis
It is technique which involves regrouping of data by application of arithmetical relationships. Identify the technique and state any two advantages of the technique identified.
