Financial Statements

Analysis

Easy

Rearrange the following items in a sequence while preparing common size statement.

(A) Calculate percentage of the total as per common base

(B) Prepare the format of Balance sheet and Profit and Loss A/c

(C) List out absolute figures in rupees at two points of time

(D) Choose a common base

Choose the correct answer from the options given below :

(B), (C), (D), (A)

(A), (C), (B), (D)

(B), (D), (C), (A)

(B), (A), (D), (C)

✅ Correct Option: 1

Proper sequence: first prepare the format (B), then list absolute figures at two points (C), next choose a common base such as revenue or total assets (D), and finally express each item as a percentage of that base (A).

2026: 24 May Shift 1

Match List-I with List-II

List-I	List-II
(A) These are the statements showing the profitability and financial position of a firm for different periods of time in a comparative form to give an idea about the position of two or more periods.	(I) Common Size Statements
(B) It summarises the causes for the changes in cash position of a business enterprise between dates of two balance sheets.	(II) Comparative Statements
(C) These are the statements which indicate the relationship of different items of a financial statement with a common item by expressing each item as a percentage of that common item.	(III) Ratio Analysis
(D) It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm.	(IV) Cash Flow Analysis

Choose the correct answer from the options given below:

2025: 29 May Shift 2

The analysis of financial statements does not serve the purposes of

2025: 24 May Shift 1

Which among the following are the commonly used tools for financial analysis?

(A) Horizontal analysis

(B) Vertical analysis

(D) Trend analysis

Choose the correct answer from the options given below:

2022: 8 Aug Shift 2

The main objective of common size statement of profit and loss is:

2022: 23 Aug Shift 2

The commonly used Techniques of financial Statements Analysis includes :

(A) Common size statements

(B) Ratio Analysis

(D) Capital Budgeting Statement

Choose the correct answer from the options given below :

2026: 12 May Shift 1

Comparative statements in financial analysis are also known as:

Solution

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