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Financial Statement Analysis Practice Question Paper

12th Standard

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Accountancy

Time : 01:00:00 Hrs
Total Marks : 35
    4 x 1 = 4
  1. The term ‘fund’ refers to

    (a)

    Current liabilities

    (b)

    Working capital

    (c)

    Fixed assets

    (d)

    Non-current assets

  2. which statements are involve personal judgment in certain cases?

    (a)

    Financial statements

    (b)

    Income statement

    (c)

    Profit and loss account statement

    (d)

    None of these

  3. ______________ information is non monetary information is also important for business decisions.

    (a)

    Personal judgement

    (b)

    Qualitative

    (c)

    Quantitative

    (d)

    Historical

  4. Comparison of financial statenients highlights the trend of the ____________ of the business.

    (a)

    Financial position

    (b)

    Performance

    (c)

    ProfitabilityAll of the above

    (d)

    All of the above

  5. 1 x 2 = 2
  6. Assertion (A) : Cash flow analysis is concerned with preparation of cash flow statement which shows the inflow and outflow of cash and cash equivalents in a given period of time.
    Reason (R) : Funds flow analysis is useful in judging the credit worthiness, financial planning and preparation of budgets.
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
    (c) (A) is true, but (R) is false
    (d) (A) is false, but (R) is true

  7. 1 x 2 = 2
  8. (a) Comparative statement
    (b) Agreed ratio
    (c) Common-size statements
    (d) Trend analysis

  9. 2 x 1 = 2
  10. Which of the following statements are true?
    (i) External analysis depends entirely on issued financial statements.
    (ii) Interpretation and analysis both are different
    (iii) Financial analysis covers interpretation.
    (a) (i) and (ii)
    (b) (i) and (iii)
    (c) (ii) and (iii)
    (d) (i), (ii) and (iii)

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    (d) (i), (ii) and (iii)

  11. Which of the following statements are true?
    (i) Financial statements are only interim report
    (ii) Financial statements are also known as annual records.
    (iii) Financial statements are historic
    (a) (i) and (ii)
    (b) (i) and (iii)
    (c) (ii) and (iii)
    (d) (i), (ii) and (iii)

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    (c) (ii) and (iii)

  12. 2 x 2 = 4
  13. From the following particulars, prepare comparative income statement of Abdul Co. Ltd.

    Particulars 2015-16
    Rs.
    2016-17
    Rs.
    Revenue from operations 3,00,000 3,60,000
    Other income 1,00,000 60,000
    Expenses 2,00,000 1,80,000
    Income tax 30% 30%
  14. What do you mean by financial statement analysis?

  15. 2 x 3 = 6
  16. Explain the steps involved in preparing comparative statement

  17. Briefly explain any three limitations of financial statement analysis. S. A

  18. 3 x 5 = 15
  19. Prepare common-size statement of financial position for the following particulars of Rani Ltd.

    Particulars 31st March, 2016 31st March, 2017
      Rs. Rs.
    I EQUITY AND LIABILITIES    
    Shareholders’ Fund 5,40,000 6,00,000
    Non-current liabilities 2,70,000 2,70,000
    Current liabilities 90,000 1,50,000
    Total 9,00,000 10,00,000
    II ASSETS    
    Non-current assets 7,20,000 8,00,000
    Current assets 1,80,000 2,00,000
    Total 9,00,000 10,00,000
  20. From the following particulars, calculate the trend percentages of Kala Ltd.

    Particulars Rs.in thousands
      2015-16 2016-17 2017-18
    Revenue from operations 400 500 600
    Other income 100 150 200
    Expenses 200 290 350
  21. From the following balance sheet of Gupta ltd, prepare comparative balance sheet as on 31st March 2017 and 31st March 2018.

    Particulars 31st March 2017 31st March 2018
    Rs. Rs.
    I. Equity and liabilities    
    shareholder's fund 2,00,000 5,20,000
    Non-current liabilities 1,00,000 1,20,000
    Current liabilities 50,000 60,000
    Total 3,50,000 7,00,000
    II. Assets    
    Non-current assets 2,00,000 4,00,000
    Current assets 1,50,000 3,00,000
    Total 3,50,000 7,00,000

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