State the meaning of Analysis and Interpretation.
Analysis and Interpretation refers to a systematic and critical examination of
the financial statements. It not only establishes cause and e Tect relationship
among the various items of the financial statements but also presents the
financial data in a proper manner. The main purpose of Analysis and
Interpretation is to present the financial data in such a manner that is easily
understandable and self-explanatory. This not only helps the accounting users to
assess the fi nancial performance of the business over a period of time but also
enables them in decision making and policy and financial designing process.
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?
List the techniques of Financial Statement Analysis.
What are Comparative Financial Statements?
State the importance of Financial Analysis?
Distinguish between Vertical and Horizontal Analysis of financial data.
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’?
Describe the steps for creating Sinking Fund for redemption of debentures.
What is meant by ‘Issue of debentures for consideration other than cash’?
Name the head under which ‘discount on issue of debentures’ appears in the balance sheet of a company.
State the meaning of ‘Debentures issued as a collateral security’.
How would you study the Solvency position of the firm?
What is meant by ‘Mortgaged Debentures’?
What are important profitability ratios? How are these worked out?
Explain the nature of the financial statements.
What is meant by redemption of debentures by conversion?
Can a company purchase its own debentures in the open market? Explain.