Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Analysis of Financial Statement NCERT Solutions | State the importance of Financial Analys

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.

State the meaning of Analysis and Interpretation.

What are Comparative Financial Statements?

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’?

What is meant by ‘Mortgaged Debentures’?

The liquidity of a business firm is measured by its ability to satisfy itslong-
term obligations as they become due. What are the ratios used forthis purpose?

Explain the process of preparing income statement and balance sheet.

List any three objectives of analysing financial statements?

‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss.

What is a ‘Convertible Debenture’?

Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?

What are important profitability ratios? How are these worked out?

Prepare the format of statement of profit and loss and explain its items.

Explain the different terms for the issue of debentures with reference to their redemption.