Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Analysis of Financial Statement NCERT Solutions | What do you mean by Common Size Statemen

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.

State the meaning of Analysis and Interpretation.

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’?

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

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

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

Can the company purchase its own debentures?

What are various types of ratios?

What is ‘Capital Reserve’?

How would you deal with ‘Premium on Redemption of Debentures?

What is meant by conversion of debentures? Describe the method of such a conversion.

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?

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