CUET Accountancy - Financial Statements - Analysis | Free Questions

Q1:

2026: 6 June Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

Comparative analysis is also known as ________ analysis.

Trend

Horizontal

Vertical

Ratio

Correct Answer

Option 2

Correct Answer

Explanation

Q2:

2026: 31 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

Common Size Statement is also referred as:

Component Percentage Statement

Horizontal Analysis

Trend Statement

Cash Flow Statement

Correct Answer

Option 1

Correct Answer

Explanation

Q3:

2026: 29 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

Which of the following is not a limitation of financial analysis?

Financial analysis does not consider price level changes.

Non-monetary aspects are ignored in financial analysis.

Financial analysis discloses the tax irregularities.

Financial analysis may be misleading without knowledge of the changes in accounting procedure.

Correct Answer

Option 3

Correct Answer

Explanation

Q4:

2026: 24 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

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:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 3

Correct Answer

Explanation

Q5:

2026: 23 May Shift 2

Financial Statements

>

Analysis

Easy

Financial Statements

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

Common Size Statement

Comparative Statement

Bank Reconciliation Statement

Trend Analysis

Correct Answer

Option 3

Correct Answer

Explanation

Q6:

2026: 21 May Shift 2

Financial Statements

>

Analysis

Medium

Financial Statements

From the following information, ascertain the percentage change in profit after tax

Particulars	2024-25	2025-26
Profit before tax	7,50,000	15,60,000
Income Tax	30%	40%

78.28%

5%

(40%)

35%

Correct Answer

Option 1

Correct Answer

Explanation

Q7:

2026: 21 May Shift 2

Financial Statements

>

Analysis

Easy

Financial Statements

One of the limitations of financial analysis given below is:

It is only a study of reports from the company.

It assess the current profitability and operational efficiency of the firm as a whole as well as its different departments, to judge the financial health of the firm.

It ascertain the relative importance of different components of the financial position of the firm.

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

Correct Answer

Option 1

Correct Answer

Explanation

Q8:

2026: 21 May Shift 1

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 Answer

Option 2

Correct Answer

Explanation

Q9:

2026: 20 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

Which financial analysis is also known as 'horizontal analysis'?

Cash Flow Analysis

Ratio Analysis

Comparative Statements

Common Size Statements

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

2026: 19 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

Common Size Statement is also known as ____________.

Horizontal Analysis

Trend Statement

Fund Flow Analysis

Component Percentage Statement

Correct Answer

Option 4

Correct Answer

Explanation

Q11:

2026: 13 May Shift 2

Financial Statements

>

Analysis

Easy

Financial Statements

The_________________ is useful for both, intra-firm comparisons over different years and inter-firm comparisons for the same year or for several years.

Horizontal analysis

Ratio Analysis

Vertical analysis

Cash Flow Analysis

Correct Answer

Option 3

Correct Answer

Explanation

Q12:

2026: 12 May Shift 1

Financial Statements

>

Analysis

Medium

Financial Statements

Match List-I with List-II

List-I	List-II
(A) Comparative Statement	(I) Expressing all items as % of a common base.
(B) Common Size Statement	(II) Determining direction of movement over several years
(C) Ratio Analysis	(III) Evaluate relationship among items of a balance sheet and a statement of profit and loss of a firm.
(D) Trend Analysis	(IV) Shows changes in items over two or more periods

Choose the correct answer from the options given below:

(A) - (II), (B) - (I), (C) - (III), (D) - (IV)

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (IV), (B) - (I), (C) - (III), (D) - (II)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 3

Correct Answer

Explanation

Q13:

2026: 12 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

Comparative statements in financial analysis are also known as:

Dynamic analysis

Vertical analysis

External analysis

Horizontal analysis

Correct Answer

Option 4

Correct Answer

Explanation

Q14:

2026: 11 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

Common size analysis is of immense use for comparing enterprises which differ substantially in size as it provides an insight into the structure of financial statements. Common Size Statements are also known as __________.

Dynamic Analysis

External Analysis

Component Percentage Statement

Horizontal Analysis

Correct Answer

Option 3

Correct Answer

Explanation

Q15:

2025: 4 June Shift 2

Financial Statements

>

Analysis

Easy

Financial Statements

'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:

(A), (B) and (D) only

(B) and (D) only

(D) Only

(C) only

Correct Answer

Option 3

Correct Answer

Explanation

Q16:

2025: 3 June Shift 2

Financial Statements

>

Analysis

Easy

Common

Which market conditions enable firms to earn higher profits?

Imperfect competition

Oligopoly

Perfect competition

Monopoly

Correct Answer

Option 4

Correct Answer

Explanation

Q17:

2025: 29 May Shift 2

Financial Statements

>

Analysis

Easy

Financial Statements

The analysis of financial statements does not serve the purposes of

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 Answer

Option 1

Correct Answer

Explanation

Q18:

2025: 29 May Shift 2

Financial Statements

>

Analysis

Medium

Financial Statements

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:

Rs. 1,50,000

Rs. 2,50,000.

Rs.200,000.

Rs.100,000

Correct Answer

Option 3

Correct Answer

Explanation

Q19:

2025: 29 May Shift 2

Financial Statements

>

Analysis

Easy

Financial Statements

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:

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (I), (B) - (II), (C) - (IV), (D) - (III)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 4

Correct Answer

Explanation

Q20:

2025: 27 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

Which of the following is not true about Comparative Statements-

These are the statements showing the profitability and financial position of a firm for different periods of time.

This analysis is also known as 'vertical analysis',

Comparative figures indicate the trend and direction of financial position and operating results.

The financial data will be comparative only when same accounting principles are used in preparing these statements.

Correct Answer

Option 2

Correct Answer

Explanation

Q21:

2025: 27 May Shift 1

Financial Statements

>

Analysis

Easy

Financial 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:

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)
(A) - (IV), (B) - (II), (C) - (I), (D) - (III)
(A) - (II), (B) - (III), (C) - (IV), (D) - (I)
(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

(A) - (IV), (B) - (II), (C) - (I), (D) - (III)

(A) - (II), (B) - (III), (C) - (IV), (D) - (I)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Correct Answer

Option 1

Correct Answer

Explanation

Q22:

2025: 26 May Shift 2

Financial Statements

>

Analysis

Easy

Common

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

Credit standard

Collection period

Credit terms

Collection policy

Correct Answer

Option 2

Correct Answer

Explanation

Q23:

2025: 26 May Shift 2

Financial Statements

>

Analysis

Easy

Financial Statements

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:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q24:

2025: 24 May Shift 1

Financial Statements

>

Analysis

Medium

Financial Statements

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:

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

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

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

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

Correct Answer

Option 2

Correct Answer

Explanation

Q25:

2025: 24 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

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:

(A), (B) and (D) only

(A), (B) and (C) only

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

(B), (C) and (D) only

Correct Answer

Option 3

Correct Answer

Explanation

Q26:

2025: 22 May Shift 1

Financial Statements

>

Analysis

Easy

Financial Statements

Analysis simply means __________ data.

Interpreting

Modifying

Simplifying

Explaining

Correct Answer

Option 3

Correct Answer

Explanation

Q27:

2025: 16 May Shift 1

Financial Statements

>

Analysis

Medium

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 .....

2,00,000

3,00,000

4,00,000

5,00,000

Correct Answer

Option 3

Correct Answer

Explanation

Q28:

2025: 16 May Shift 1

Financial Statements

>

Analysis

Easy

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

Comparative Statements

Ratio Analysis

Cash flow statements

Measure of central tendency

Correct Answer

Option 4

Correct Answer

Explanation

Q29:

2025: 16 May Shift 1

Financial Statements

>

Analysis

Medium

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:

(A) - (IV), (B) - (II), (C) - (I), (D) - (III)

(A) - (IV), (B) - (I), (C) - (II), (D) - (III)

(A) - (III), (B) - (II), (C) - (I), (D) - (IV)

(A) - (III), (B) - (I), (C) - (II), (D) - (IV)

Correct Answer

Option 2

Correct Answer

Explanation

Q30:

2025: 15 May Shift 2

Financial Statements

>

Analysis

Easy

Based on the information provided below, compute and answer

Comparative Balance Sheet of Amrit Limited

as at March 31, 2023 and March 31, 2024

(Rs. in Lakhs)

Particulars	March 31, 2023	March 31, 2024	Absolute Increase (+) or Decrease (–)	Percentage Increase (+) or Decrease (–)
I. Equity and Liabilities
Shareholders’ Funds
Share capital	15	20	5	……
Reserves and surplus	14	……	(1)	(7.14)
Non-current liabilities
Long-term borrowings	……	19	3	18.75
Current liabilities
Trade payables	2	3	1	50
Total	47	55	8	17.02
II. Assets
Non-current assets
Fixed assets
Tangible assets	15	……	5	33.33
Intangible assets	16	19	3	18.75
Current assets
Inventories	14	13	(1)	(7.14)
Cash and Cash Equivalents	2	3	1	……
Total	47	55	8	17.02

The value of long term borrowings as on 31 March 2023

22,00,000

16,00,000

18,00,000

7,00,000

Correct Answer

Option 2

Correct Answer

Explanation

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