Analysis of Financial Statements

Commerce ⇒ Accountancy

Analysis of Financial Statements starts at 12 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Analysis of Financial Statements. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 12

Explain the difference between internal and external analysis of financial statements.

Explain the difference between vertical and horizontal analysis of financial statements.

Explain the importance of inter-firm comparison in financial statement analysis.

Explain the significance of ratio analysis in financial statement analysis.

Explain the term 'comparative financial statements'.

Explain the term 'trend analysis' in the context of financial statement analysis.

Given the following data for three years: Net Profit (₹) - Year 1: 1,00,000; Year 2: 1,20,000; Year 3: 1,50,000. Calculate the trend percentage for Year 3, taking Year 1 as the base year.

Given the following data for two years: Net Sales in Year 1 = ₹5,00,000, Net Sales in Year 2 = ₹6,00,000. Calculate the percentage increase in Net Sales.

Given the following data: Current Assets = ₹2,00,000, Current Liabilities = ₹1,00,000. Calculate the Current Ratio.

Given the following data: Net Sales = ₹8,00,000, Cost of Goods Sold = ₹6,00,000. Calculate the Gross Profit Ratio.

Given the following data: Total Assets = ₹10,00,000, Total Liabilities = ₹4,00,000. Calculate the Debt-Equity Ratio if Equity is ₹6,00,000.

State any two limitations of financial statement analysis.

State any two objectives of financial statement analysis.

State any two parties interested in financial statement analysis and their interests.

What is meant by 'Analysis of Financial Statements'?

What is meant by 'window dressing' in financial statements?