Commerce (English Medium) कक्षा ११ - CBSE Important Questions for Accountancy

State the objectives of 'Analysis of Financial Statements'.

Financial Statements are prepared following the constituent accounting concepts principles procedures and also the legal environment in which the business organisation operate. These statements are the source of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.

From the above statements identify any two values that a company should observe while preparing its financial statements. Also, State under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act 2013

(1) Capital Reserve
(2) Calls-in-Advance
(3) Loose Tools
(4) Bank overdraft

State the objectives of 'Analysis of Financial Statements'.

Financial Statements are prepared following the constituent accounting concepts principles procedures and also the legal environment in which the business organisation operate. These statements are the source of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.

From the above statements identify any two values that a company should observe while preparing its financial statements. Also, State under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act 2013

(1) Capital Reserve
(2) Calls-in-Advance
(3) Loose Tools
(4) Bank overdraft

Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:

1. Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.
2. Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
3. Registration fees paid at the time of purchase of a building.
4. Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.
5. Depreciation charged on a plant.
6. The expenditure incurred in erecting a platform on which a machine will be fixed.
7. Advertising expenditure, the benefits of which will last for four years. 

What is meant by 'Financial Statements' of a company?

What is meant by 'Financial Statements' of a company?