CUET Accountancy Financial Statements > Analysis PYQs

'Vertical analysis' is also known as: (A) Ratio Analysis (B) Cash Flow Analysis (C) Comparative Statement Analysis (D) Common Size Statement Analysis Choose the correct answer from the options given below:

Which market conditions enable firms to earn higher profits?

The analysis of financial statements does not serve the purposes of

Net Profit after tax Rs. 60,000; 10% Long-term debt Rs.10,00,000; and Tax rate 40%. The net profit before interest and tax is:

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:

Which of the following is not true about Comparative Statements-

Match List-I with List-II | List-I | List-II | |---|---| | (A) Comparative statements | (I) Operating Activities | | (B) Common Size Statement | (II) Horizontal Analysis | | (C) Cash flow Analysis | (III) Debt Equity Ratio | | (D) Ratio Analysis | (IV) Vertical Analysis | Choose the correct answer from the options given below: 1. (A) - (II), (B) - (IV), (C) - (I), (D) - (III) 2. (A) - (IV), (B) - (II), (C) - (I), (D) - (III) 3. (A) - (II), (B) - (III), (C) - (IV), (D) - (I) 4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Which of the following is not a constituents of the credit policy of a business firm?

Arrange the following steps to prepare the Comparative Statements- (A) List out absolute figures in rupees relating to two points of time (B) Prepare the format (C) Find out the change in absolute figures by subtracting the first year from the second year and indicate the change as increase or decrease. (D) Calculate the percentage change Choose the correct answer from the options given below:

Arrange the following outcomes in the correct order for calculating profit and loss in the common-size statement (A) Net Profit (B) Non-Operating Income (C) Revenue from Operations (D) Profit after tax Choose the correct answer from the options given below:

Which among the following are the commonly used tools for financial analysis? (A) Horizontal analysis (B) Vertical analysis (C) Ratio analysis (D) Trend analysis Choose the correct answer from the options given below:

Analysis simply means __________ data.

Profit after interest and tax is Rs 1,60,000. 10% Long term borrowing Rs 20,00,000 Rate of Tax : 20%. Profit before interest and tax will be .....

Which one of the following is not a tool for analyzing financial statements?

Match List-I with List-II | List-I | List-II | |---|---| | (A) 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 | (I) Trend Analysis | | (B) Technique of studying the operational results and financial position over a series of years. | (II) Comparative Statements | | (C) 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 | (III) Ratio Analysis | | (D) Describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm | (IV) Common-Size Statements | Choose the correct answer from the options given below:

Which of the following indicate limitation of Financial analysis:

The common size statements are useful, both, in intra-firm comparisons over different years and also in making inter-firm comparisons for several years. This analysis is also known as

Which analysis is a judgemental process which aims to estimate current and past financial positions and the results of the operation of an enterprise, with primary objective of determining the best possible estimates and predictions about the future conditions?

From the following details, calculate net profit before tax: Net Profit after tax is Rs. 50,000; 15% Long-term debt 12,00,000; Tax rate 20%.

Which of the following is not the tool for analysis of Financial Statements-

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 (C) The financial statements of a business enterprise include cash flow statement. (D) Ratio analysis establishes relationship between two financial statements. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Comparative Statements | (I) It describes the significant relationship which exists between various items of a balance sheet and a statement of profit and loss of a firm. | | (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) 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. | | (D) Ratio Analysis | (IV) These are the statements showing the profitability and financial position of a firm for different periods of time. | Choose the correct answer from the options given below:

Which of the following is True about analysis of financial statements- (A) The financial statements of a business enterprise include cash flow statement. (B) Financial analysis is used only by the creditors. (C) Comparative statements are the form of horizontal analysis. (D) Financial analysis helps an analyst to arrive at a decision. Choose the correct answer from the options given below:

Financial analysis is useful and important to different users. Which of the following is not the user of Financial analysis:

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. (C) Financial analysis helps an analyst to arrive at a decision. (D) Comparative statements are the form of vertical analysis. Choose the correct answer from the options given below:

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:

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

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:

Which statements are true- (A) The financial statements of a business enterprise include cash flow statement. (B) Comparative statements are the form of horizontal analysis. (C) Ratio analysis help business in identifying the problem areas. (D) Financial analysis is used only by the creditors. Choose the correct answer from the options given below:

Which of the following item is not a tool of financial statement analysis?

Match List I with List II | LIST I | LIST II | |---|---| | A. Horizontal Analysis | I. Common size statement | | B. Vertical Analysis | II. Comparative statement | | C. External Analysis | III. Access to all published and unpublished information | | D. Internal analysis | IV. Access only to published information | Choose the correct answer from the options given below:

Common Size Statements are also known as :

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:

Common size analysis is also known as

While preparing common-size Balance sheet, each item of Balance sheet is expressed as % of

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 :

The commonly used Techniques of financial Statements Analysis includes : (A) Common size statements (B) Ratio Analysis (C) Trend Analysis (D) Capital Budgeting Statement Choose the correct answer from the options given below :

In common size statement, if revenue from operations are Rs. 23,00,000 and other incomes are Rs. 3,00,000, then the percentage of 'Total Revenue from Operations' to 'Revenue from operations' will be:

Comparative Statements are also known as:

Horizontal analysis is known as:

Comparative statements are the form of:

Vertical analysis uses financial data of a company for:

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

The comparative financial statements show:

Common size statements are the form of:

The term Financial Analysis includes

Common Size Statement are also known as: