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What is ‘Analysis’ of Financial Statement? - Book Keeping and Accountancy

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प्रश्न

What is ‘analysis’ of financial statement?

एक पंक्ति में उत्तर
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उत्तर

Analysis of financial statement means critical evaluation of financial statement to measure the profitablity, solvency and growth of organisation.
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2016-2017 (July) Set 1

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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.


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 true or false with reason.

Gross Profit depends upon Net Sales.


State and explain any 'four objectives' of analysis of financial statement from a business concern's point of view.


Following incomplete information is available from the records maintained by Mr. Premnath.

Particulars

1.4.2009
Rs.

31.3.2010
Rs.

Cash Balance

Bank Balance

Sundry Debtors

Stock

Furniture

Creditors

10% Bank Loan

12,000

26,000

20,000

24,000

24,000

20,000

20,000

13,000

30,000

26,000

26,000

24,000

20,000

20,000

Additional Information :

(1) Mr. Premnath introduced additional capital in the business amounted to Rs 15,000 on 1st January, 2010.

(2) He has paid life insurance premium Rs 10,000 from the business account and withdrawn goods worth Rs 5,000 for his personal use.

(3) Write off Rs 1,000 as bad debts and maintain reserve for doubtful debts at 5% on remaining debtors.

(4) Provide depreciation at 5% p.a. on furniture.

(5) The closing balance of sundry creditors has been overvalued by Rs 2,000 in the books of account.

(6) Provide Interest on Capital and Bank Loan @ 10% p.a.

Prepare :

(i) Statement of Affairs as on 1.4.2009.

(ii) Statement of Affairs as on 31.3.2010.

(iii) Statement of Profit or Loss for the year ended 31st March, 2010. 


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 _______________.


Answer the following in brief :
State any three limitations of Analysis of financial statement.


State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.


Bill Payable is ___________


State true or false with reason.

Financial Statement includes only Balance Sheet.


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.

Give any three examples of current assets?


Answer in one sentence only.

State the formula of Cost of goods sold?


Which of the following statements is not true?


Following is the Balance Sheet of Mahi Traders for the year ended 31-3-2018 and 31-3-2019:

Liabilities 31-03-2018 (₹) 31-03-2019 (₹) Assets 31-03-2018 (₹) 31-03-2019 (₹)
Equity Share Capital 1,60,000 1,60,000 Fixed Assets 2,40,000 2,88,000
Pref. Shares Capital 40,000 40,000 Investment 40,000 40,000
Reserve and Surplus 40,000 48,000 Current Assets 1,20,000 96,000
Secured Loan 80,000 32,000      
Unsecured Loan 40,000 72,000      
Current Liabilities 40,000 72,000      
  4,00,000 4,24,000   4,00,000 4,24,000

Prepare Common Size Balance Sheet for the year 31-03-2018 and 31-03-2019


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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