Tamil Nadu Board of Secondary EducationHSC Commerce Class 12th
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Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide chapter 8 - Financial Statement Analysis [Latest edition]

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Class 12th Accountancy Answers Guide - Shaalaa.com
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Chapter 8: Financial Statement Analysis

Multiple choice questionsVery short answer questionsShort answer questionsExercises
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Multiple choice questions [Pages 285 - 286]

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide Chapter 8 Financial Statement AnalysisMultiple choice questions [Pages 285 - 286]

Choose the correct answer

Multiple choice questions | Q I 1. | Page 285

Which of the following statements is not true?

  • Notes and schedules also form part of financial statements.

  • The tools of financial statement analysis include common-size statement

  • Trend analysis refers to the study of movement of figures for one years

  • The common-size statements show the relationship of various items with some common base, expressed as percentage of the common base.

Multiple choice questions | Q I 2. | Page 285

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

  • Over a period of time

  • As on a particular date

  • For a period of time

  • For the accounting period

Multiple choice questions | Q I 3. | Page 285

Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analysed?

  • Cash flow statement

  • Common size statement

  • Comparative statement

  • Trend analysis

Multiple choice questions | Q I 4. | Page 285

The financial statements do not exhibit

  • Non-monetary data

  • Past data

  • Comparative statement

  • Standard costing

Multiple choice questions | Q I 5. | Page 285

Which of the following is not a tool of financial statement analysis?

  • Trend analysis

  • Common size statement

  • Comparative statement

  • Standard costing

Multiple choice questions | Q I 6. | Page 285

The term fund’ refers to

  • Current liabilities

  • Working capital

  • Fixed assets

  • Non-current assets

Multiple choice questions | Q I 7. | Page 285

Which of the following statement is not true?

  • All the limitations of financial statements are applicable to financial statement analysis also.

  • Financial statement analysis is only the means and not an end.

  • Expert knowledge is not required in analyzing the financial statements

  • Interpretation of the analysed data involves personal judgment.

Multiple choice questions | Q I 8. | Page 285

A limited company’s sales have increased from ‘ 1,25,000 to 1,50,000. How does this appear in the comparative income statement?

  • +20%

  • +120%

  • -120%

  • -20%

Multiple choice questions | Q I 9. | Page 286

In a common-size balance sheet, if the percentage of non-current assets is 75, what would be the percentage of current assets?

  • 175

  • 125

  • 25

  • 100

Multiple choice questions | Q I 10. | Page 286

Expenses for a business for the first year were ₹ 80,000. In the second year, it was increased to ₹ 88,000. What is the trend percentage in the second year?

  • 10%

  • 110%

  • 90%

  • 11%

Very short answer questions [Page 286]

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide Chapter 8 Financial Statement AnalysisVery short answer questions [Page 286]

Very short answer questions | Q II 1. | Page 286

Short Answer Question

State the meaning of financial statements?

Very short answer questions | Q II 2. | Page 286

List the tools of financial statement analysis.

Very short answer questions | Q II 3. | Page 286

What is working capital?

Very short answer questions | Q II 4. | Page 286

When is trend analysis preferred to other tools?

Short answer questions [Page 286]

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide Chapter 8 Financial Statement AnalysisShort answer questions [Page 286]

Short answer questions | Q III 1. | Page 286

‘Financial statements are prepared based on past data’. Explain how this is a limitation.

Short answer questions | Q III 2. | Page 286

Write a short note on cash flow analysis?

Short answer questions | Q III 3. | Page 286

Briefly explain any three limitations of financial statements.

Short answer questions | Q III 4. | Page 286

Explain the steps involved in preparing comparative statements?

Short answer questions | Q III 5. | Page 286

Explain the procedure for preparing a common- size statement.

Exercises [Pages 286 - 291]

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide Chapter 8 Financial Statement AnalysisExercises [Pages 286 - 291]

Comparative statement analysis

Exercises | Q IV 1. | Page 286

From the following particulars, prepare a comparative income statement of Arul Ltd.

Particulars 2015-16 (₹) 2016-17 (₹)
Revenue from operations 50,000 60,000
Other income 10,000 30,000
Expenses 40,000 50,000
Exercises | Q IV 2. | Page 286

From the following particulars, prepare a comparative income statement of Barani Ltd.

Particulars 2016-17 ₹ 2017-18 ₹
Revenue from operations 30,000 45,000
Other income 4,000 6,000
Expenses 10,000 15,000
Income tax 30% 30%
Exercises | Q IV 3. | Page 287

From the following Particulars, prepare a comparative income ‘statement of Daniel Ltd.

Particulars 2015 -16
2016-17
Revenue from operations 40,000 50,000
Operating expenses 25,000 27,500
Income tax
(% of the profit before tax)
30% 30%
Exercises | Q IV 4. | Page 287

From the following particulars, prepare a comparative .statement of the financial position of Muthu Ltd.

Particulars 31st March 2017 (₹) 31st March 2018 (₹)
I. Equity and Liabilities    
Shareholders’ Fund 4,00,000 4,40,000
Non-current liabilities 1,50,000 1,65,000
Current liabilities 75,000 82,500
Total 6,25,000 6,87,500
II. Assets    
Non-Current assets 5,00,000 6,00,000
Current assets 1,25,000 87,500
Total 6,25,000 6,87,500
Exercises | Q IV 5. | Page 287

From the following particulars, prepare a comparative statement of the financial position of Kala Ltd.

Particulars 31st March, 2017
(₹)
31st March, 2018
(₹)
I. EQUITY AND LIABILITIES    
1. Shareholders' Fund    
a) Share capital 3,00,000 3,60,000
b) Reserves and surplus 50,000 50,000
2. Non-current liabilities    
Long-term borrowings 50,000 40,000
3. Current liabilities    
Trade payables 20,000 12,000
Total 4,20,000 4,62,000
II. ASSETS    
1. Non - Current assets    
a) Fixed assets 2,50,000 2,90,000
b) Non - Current investments 50,000 40,000
2. Current assets    
Inventories 80,000 1,00,000
Cash and Cash equivalents 40,000 32,000
Total 4,20,000 4,62,000

Common-size statement

Exercises | Q IV 6. | Page 288

Prepare a common-size income statement for the following particulars Raja Ltd. for the year ended 31st March 2017.

Particulars 2016-17 ₹
Revenue from operations 4,50,000
Other income 67,500
Expenses 1,35,000
Exercises | Q IV 7. | Page 288

From the following particulars of Maria ltd and Kala Ltd. Prepare a common-Size income statement for the year ended 31st March 2019.

Particulars Maria Ltd ₹ Kala Ltd ₹
Revenue from operations 1,00,000 2,00,000
Other income 10,000 30,000
Expenses 70,000 1,20,000
Exercises | Q IV 8. | Page 288

Prepare a common-size income statement for the following particulars of Sam Ltd. table.

Particulars 2015-16 ₹ 2016-17 ₹
Revenue from operations 4,00,000 5,00,000
Other income 80,000 50,000
Expenses 2,40,000 2,50,000
Income Tax 30% 30%
Exercises | Q IV 9. | Page 289

Prepare Common-size balance sheet of Meena Ltd. as of 31st March 2018.

Particulars 31st March 2018
I. EQUITY AND LIABILITIES  
Shareholder’s Funds 2,00,000
Non-Current liabilities 1,60,000
Current liabilities 40,000
Total 4,00,000
II. ASSETS  
Non- Current assets 3,00,000
Current assets 1,00,000
Total 4,00,000
Exercises | Q IV 10. | Page 289

Prepare a common-size statement of financial position for the following particulars of Rani Ltd.

Particulars 31st March 2016 31st March 2017
I. EQUITY AND LIABILITIES    
Shareholder’s funds 5,40,000 6,00,000
Non-Current liabilities 2,70,000 2,50,000
Current liabilities 90,000 1,50,000
Total 9,00,000 10,00,000
II. ASSETS    
Non- Current assets 7,20,000 8,00,000
Current assets 1,80,000 2,00,000
Total 9,00,000 10,00,000
Exercises | Q IV 11. | Page 289

Prepare a common-size statement of financial position for the following particulars of Yasmin Ltd. and Sakthi Ltd.

Particulars Yasmin
Ltd
Sakthi Ltd.
I. EQUITY AND LIABILITIES    
1. Shareholder's Fund    
a) Share capital 2,00,000 3,00,000
b) Reserves and surplus 50,000 60,000
2. Non-current liabilities    
Long-term borrowings 1,50,000 1,80,000
3. Current liabilities    
Trade payables 1,00,000 60,000
Total 5,00,000 6,00,000
II ASSETS    
1. Non-Current assets    
a) Fixed assets 2,00,000 3,00,000
b) Non-current investments 50,000 1,20,000
2. Current assets    
Inventories 2,00,000 90,000
Cash and cash equivalents 50,000 90,000
Total 5,00,000 6,00,000

Trend analysis

Exercises | Q IV 12. | Page 290

From the following particulars, calculate the trend percentages of Kala Ltd.

Particulars ₹ in thousands
2015-16 2016-17 2017-18
Revenue from operations 400 500 600
Other income 100 150 200
Expenses 200 290 350
Exercises | Q IV 13. | Page 290

From the following particulars, calculate the Trend percentages of Kavitha Ltd.

Particulars ₹ in thousands
2015-16 2016-17 2017-18
Revenue from operations 100 125 150
Other income 20 25 30
Expenses 200 290 350
Exercises | Q IV 14. | Page 290

From the following particulars, calculate the trend percentage of Kumar Ltd.

Particulars ₹ in thousands
2015-16 2016-17 2017-18
Revenue from operations 300 270 150
Other income 50 80 60
Expenses 250 200 125
Income Tax % 40 40 40
Exercises | Q IV 15. | Page 291

From the following particulars, calculate the trend percentages of Anu Ltd.

Particulars ₹ in thousands
Year 1 Year 2 Year 3
I. EQUITY AND LIABILITIES      
Shareholder’s funds 500 550 600
Non-Current liabilities 200 250 240
Current liabilities 100 80 120
Total 800 880 960
II. ASSETS      
Non- Current assets 600 720 780
Current assets 200 160 180
Total 800 880 960
Exercises | Q IV 16. | Page 291

From the following particulars, calculate the trend percentages of Babu Ltd.

Particulars ₹ in thousands
  Year 1 Year 2 Year 3
I EQUITY AND LIABILITIES      
1. Shareholders' Fund      
a) Share capital 100 127 106
b) Reserves and surplus 30 30 45
2. Non-current liabilities      
Long-term borrowings 70 77 84
3. Current liabilities      
Trade payables 20 30 40
Total 220 264 275
II ASSETS      
1. Non-current assets      
a) Fixed assets 100 118 103
b) Non-current investments 40 50 60
2. Current assets      
Inventories 60 66 72
Cash and cash equivalents 20 30 40
Total 220 264 275

Chapter 8: Financial Statement Analysis

Multiple choice questionsVery short answer questionsShort answer questionsExercises
Class 12th Accountancy Answers Guide - Shaalaa.com

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide chapter 8 - Financial Statement Analysis

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide chapter 8 (Financial Statement Analysis) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the Tamil Nadu Board of Secondary Education Class 12th Accountancy Answers Guide solutions in a manner that help students grasp basic concepts better and faster.

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Concepts covered in Class 12th Accountancy Answers Guide chapter 8 Financial Statement Analysis are Concept of Financial Statement Analysis, Financial Statements, Financial Statements of Companies, Tools for Financial Statement Analysis, Preparation of Comparative Statements, Preparation of Common-size Statements, Trend Analysis.

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