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प्रश्न
Select the appropriate answer from the alternatives given below & rewrite the completed statement:
The methodical classification of financial statement is called _____________.
विकल्प
an interpretation
an analysis
ratio
profit and loss A/c
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उत्तर
The methodical classification of financial statement is called an analysis.
Explanation: The classification of financial statement is done to evaluate the health of a business concern. The methodical classification of the items in the financial statements helps to analyse and draw various conclusions regarding profitability, efficiency, liquidity and financial position of the business.
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संबंधित प्रश्न
Capital balance is ascertained by preparing....................................
- Statement of affairs
- Cash account
- Drawing account
- Debtor’s account
Balance sheet is a nominal account.
What do you mean by Analysis of Financial Statement?
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’.
From the following information of a club show the amounts of match expenses and match fund in the Financial Statement of the Club for the year ended on 31st March, 2009 and 31st March, 2010.
|
Details |
Amount Rs |
|
Match expenses (Paid during the year 2009-2010) |
30,000 |
|
Match Fund (as on 31-3-2009) |
17,000 |
|
Donation for Match Fund (Received during the year 2009 – 2010) |
9,000 |
|
Proceeds from the sale of match tickets (Received during the year 2009-2010) |
3,000 |
State true or false with reason.
Gross Profit depends upon Net Sales.
Select the appropriate answer from the alternatives given below & rewrite the completed statement
From financial statement analysis, the creditors are interested to know _____________.
Answer the following in brief :
What do you mean by analysis of financial statements?
State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.
What is ‘analysis’ of financial statement?
Explain the limitations of analysis of financial statements.
The Common Size Statement requires _________.
Bill Payable is ___________
State true or false with reason.
Dividend paid is not a source of fund
State true or false with reason.
The short term deposits are considered as cash equivalent.
Answer in one sentence only.
State the formula of Cost of goods sold?
Which of the following statements is not true?
Balance sheet provides information about the financial position of a business concern
The term fund’ refers to
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 | ||
Which of the following is a tool of Analysis of Financial Statements?
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.
