Financial Statements

Analysis

Easy

Identify the correct sequence to find out profit after tax while preparing comparative income statement

A. Deduct expenses

B. Find out total revenue by adding other incomes to revenue from operations

C. Find out profit after tax

D. Deduct tax

E. Calculate profit before tax

Choose the correct answer from the options given below:

E, B, A, D, C

B, A, E, D, C

B, E, A, C, D

E, C, B, A, D

✅ Correct Option: 2

Correct sequence: Find total revenue (B), deduct expenses (A), calculate profit before tax (E), deduct tax (D), arrive at profit after tax (C). This follows the standard format of preparing income statement.

2022: 15 July Shift 2

Common Size Statement are also known as:

2025: 4 June Shift 2

'Vertical analysis' is also known as:

(A) Ratio Analysis

(B) Cash Flow Analysis

(D) Common Size Statement Analysis

Choose the correct answer from the options given below:

2025: 15 May Shift 2

The value of long term borrowings as on 31 March 2023

2025: 13 May Shift 2

Choose the correct statements -

(A) The financial statements of a business enterprise include cash flow statements.

(B) Common size statements and financial ratios are the two tools employed in vertical analysis.

(D) Comparative statements are the form of vertical 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:

2025: 29 May Shift 2

Match List-I with List-II

List-I	List-II
(Book/Theory proposed/Characteristic, etc.)	(Author/Thinker/Name of Theory, etc.)
(A) comparative statement	(I) study the operational results over the series of years.
(B) common size statement.	(II) express the relationship between various items of financial statement.
(C) trend analysis.	(III) study the relationship between two or more years.
(D) ratio analysis.	(IV) express each item as a percentage of the common base or item.

Choose the correct answer from the options given below:

Solution

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