Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Analysis of Financial Statement NCERT Solutions | State the meaning of Analysis and Interp
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.
More Questions From Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Analysis of Financial Statement
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Explain the usefulness of trend percentages in interpretation of financial performance of a company.
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What do you understand by analysis and interpretation of financial statements? Discuss its importance.
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Describe the different techniques of financial analysis and explain the limitations of financial analysis.
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What is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.
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Explain how common size statements are prepared giving an example.
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List the techniques of Financial Statement Analysis.
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What are Comparative Financial Statements?
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State the importance of Financial Analysis?
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Distinguish between Vertical and Horizontal Analysis of financial data.
Popular Questions of Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
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What do you mean by Ratio Analysis?
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State the meaning of financial statement analysis?
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What does a Bearer Debenture mean?
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What are various types of ratios?
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What are limitations of financial statement analysis?
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State the meaning of ‘Debentures issued as a collateral security’.
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What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover - Q:-
List any three objectives of analysing financial statements?
- Q:-
What is meant by ‘Issue of debentures for consideration other than cash’?
Recently Viewed Questions of Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
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What is ‘Capital Reserve’?
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What are various types of ratios?
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Explain the different terms for the issue of debentures with reference to their redemption.
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How debentures are different from shares? Give two points.
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Can the company purchase its own debentures?
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What is discount on issue of debentures?
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‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss. - Q:-
What is meant by ‘Issue of debentures for consideration other than cash’?
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List any three objectives of analysing financial statements?
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Can a company purchase its own debentures in the open market? Explain.
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