CUET Accountancy: Financial StatementsAnalysis. Free, no login required.

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

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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

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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

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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

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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: