Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Analysis of Financial Statement NCERT Solutions | Distinguish between Vertical and Horizon

Explain the usefulness of trend percentages in interpretation of financial performance of a company.

What do you understand by analysis and interpretation of financial statements? Discuss its importance.

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

What is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.

Explain how common size statements are prepared giving an example.

What do you mean by Common Size Statements?

State the importance of Financial Analysis?

List the techniques of Financial Statement Analysis.

State the meaning of Analysis and Interpretation.

What are Comparative Financial Statements?

What do you mean by Ratio Analysis?

State the meaning of financial statement analysis?

What does a Bearer Debenture mean?

What are various types of ratios?

What are limitations of financial statement analysis?

State the meaning of ‘Debentures issued as a collateral security’.

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

List any three objectives of analysing financial statements?

What is meant by ‘Issue of debentures for consideration other than cash’?

Can the company purchase its own debentures?

What are limitations of financial statement analysis?

What is meant by ‘Premium on Redemption of Debentures’?

Describe the steps for creating Sinking Fund for redemption of debentures.

State the meaning of ‘Debentures issued as a collateral security’.

What is meant by ‘Issue of debentures for consideration other than cash’?

Explain the limitations of financial statements.

Name the head under which ‘discount on issue of debentures’ appears in the balance sheet of a company.

How would you study the Solvency position of the firm?

State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors