हिंदी

Government is Not Interested in the Analysis of Financial Statement.

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प्रश्न

Government is not interested in the analysis of financial statement.
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उत्तर

False
 
Explanation: It is incorrect to say that government is not interested in the analysis of financial statements. The government uses these statements to study the profit margins and the trends to provide concessions/subsidies or to withdraw or increase/decrease excise and other duties.
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2013-2014 (October)

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संबंधित प्रश्न

Balance sheet is a nominal account.


One of the objectives of ‘Financial Statements Analysis’ is to identify the reasons for change in the financial position of the enterprise, State two more objectives of this analysis.


State any one limitation of Analysis of Financial Statement.


JW Ltd. was a company manufacturing geysers. As a part of its long-term goal for an expansion, the company decided to identify the opportunity in rural areas. The initial plan was rolled out for Bhiwani village in Haryana. Since the village did not have a regular supply of electricity, the company decided to manufacture solar geysers. The core team consisting of the Regional Manager, Accountant and the Marketing Manager was taken from the Head Office and the remaining employees were selected from the village and neighbourhood areas. At the time of preparation of financial statements, the accountant of the company fell sick and the company debuted a junior accountant temporarily from the village for two months. The Balance Sheet prepared by the junior accountant showed the following items against the Major Heads and Sub-heads mentioned which were not as per Schedule III of the Companies Act, 2013.

Items Major Head/Sub-Head
Loose Tools Trade Receivables
Cheques in Hand Current Investments
Term Loan from Bank Other Long-term Liabilities
Computer Software Tangible Fixed Assets

Identify any two values that the company wants to communicate to the society. Also, present the above items under the correct major heads and sub-heads as per Schedule III of the Companies Act, 2013.


State the significance of Analysis of Financial Statements to the ‘Lenders’.


State whether following statement are true or false :
Financial statements include only balance sheet.


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:
The methodical classification of financial statement is called _____________.


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
From financial statement analysis, the creditors are interested to know _____________.


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.

The short term deposits are considered as cash equivalent.


State true or false with reason.

Ratio analysis measures profitability efficiency and financial soundness of the business.


Answer in one sentence only.

Give any three examples of current assets?


Prepare Comparative Balance Sheet for the year ended 31.3.18 and 31.3.19 Assets & Liabilities as follows:

Particulars 31.3.18 (₹) 31.3.19 (₹)
1) Fixed Assets 120,000 1,50,000
2) Share Capital 60,000 72,000
3) Current Assets 28,000 27,000
4) Reserve & Surplus 24,000 30,000
5) Loan 34,000 51,000
6) Current liabilities 30,000 24,000

Which of the following statements is not true?


Balance sheet provides information about the financial position of a business concern


Convert following Trading Account and Profit and Loss Account into Vertical Income Statement:

Dr. Trading, Profit and Loss Account
for the year ended as on 31st March,2020 
Cr.
Particulars Amount ₹ Particulars Amount ₹
To Opening stock 20,000 By Sales 1,20,000
To Purchases 90,000 By Closing Stock 30,000
To Carriage inward 500    
To Wages 10,000    
To Gross Profit c/d 29,500    
Total 1,50,000 Total  1,50,000
To Office expenses 12,500 By Gross Profit b/d 29,500
To Selling expenses 10,000    
To Finance expenses 3,000    
To Net Profit c/d 4,000    
  29,500   29,500

Under which major heads and sub-heads will the following items be presented in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?

  1. Bills Receivable
  2. Securities premium reserve
  3. Calls in advance

Which of the following are not tools of Financial Analysis?

  1. Cash Flow Statement
  2. Income Statement
  3. Balance Sheet
  4. 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.


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