CUET Accountancy - The analysis of financial statements does not serve the purposes of | PYQs + Solutions

CUET Accountancy 2025 29 May Shift 2

Financial Statements

Easy

Financial Statements

Satisfying the statutory requirement

Assessing the current profitability and operational efficiency of the firm as a whole as well as its different departments so as to judge the financial health of the firm

Ascertaining the relative importance of different components of the financial position of the firm.

Identifying the reasons for change in the profitability/financial position of the firm.

✅ Correct Option: 1

Related questions:

14 May Shift 2

Which of the following combination of statements are NOT true-

(A) Financial analysis is used only by the creditors.

(B) Comparative statements are the form of vertical analysis

(D) Ratio analysis establishes relationship between two financial statements.

Choose the correct answer from the options given below:

13 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Comparative Statements	(I) 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.
(B) Common Size Statements:	(II) It is a technique of studying the operational results and financial position over a series of years.
(C) Trend Analysis	(III) It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm.
(D) Ratio Analysis	(IV) 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.

Choose the correct answer from the options given below:

22 May Shift 1

Analysis simply means __________ data.

CUET Accountancy 2025 29 May Shift 2 PYQs

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