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

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Question

What is ‘analysis’ of financial statement?

One Line Answer
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Solution

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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RELATED QUESTIONS

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.


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 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 _______________.


Give one word/term/ phrase for the following statement
Critical evaluation of financial statement to measure profitability.


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


Explain the limitations of analysis of financial statements.


The Common Size Statement requires _________.


Give one word/term/phrase for the following statement.

Statement showing changes in cash and cash equivalent during a particular period.


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?


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


Which of the following is a tool of Analysis of Financial Statements?


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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