Financial Statements

Analysis

Easy

Financial Statements

The following steps are to be followed to prepare the comparative statements in the prescribed sequence.

(A) Find out the change in absolute figures by subtracting the first year from the second year and indicate the change as increase (+) or decrease (–)

(B) Rearrange the given items

(C) Calculate the percentage change

(D) List out absolute figures in rupees relating to two points of time

Choose the correct answer from the options given below.

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

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

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

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

✅ Correct Option: 2

Preparation of a comparative statement starts with rearranging the given items into the required format (B), then listing the absolute figures for the two periods side by side (D), then computing the absolute change by subtracting the first year from the second and marking it as increase or decrease (A), and finally expressing that change as a percentage of the base year (C).

2025: 13 May Shift 1

Excess value of net assets over purchase consideration at the time of purchase of business is credited to

2022: 15 July Shift 2

Common Size Statement are also known as:

2025: 13 May Shift 2

Choose a pair of correct statements

(A) The only purpose of financial reporting is to keep the managers informed about the progress of operations.

(B) Analysis of data provided in the financial statements is termed as financial analysis.

(C) Long-term borrowings are concerned about the ability of a firm to discharge its obligations to pay interest and repay the principal amount.

(D) The ratio reflects quantitative and qualitative aspects of the results.

Choose the correct answer from the options given below:

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:

2025: 15 May Shift 2

The value of long term borrowings as on 31 March 2023

2022: 8 Aug Shift 2

Common size statements are the form of:

Solution

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CUET Accountancy Past Year Questions (Topic-Wise)