State the meaning of financial statement analysis?
Financial statements analysis includes gaining an idea of an entitys financial situation by analysing the financial statements of the company. You will use three main financial statements—statement of income, balance sheet and cash flow statement. Analysis of these financial statements is also submitted to the board of directors and senior management committees. They use the information in their decision- making process as input. This research is also used by third stakeholders, such as regulatory authorities and investors, to gain insight into the organisation.
How will you disclose the following items in the Balance Sheet of a company;
(i) Loose tools
(ii) Uncalled liability on partly paid-up shares
(iii) Debentures redemption reserve
(iv) Mastheads and publishing titles (v) 10% debentures
(vi) Proposed dividend
(vii) Share forfeited account
(viii) Capital redemtion reserve
(ix) Mining rights
(x) Work-in-progress
State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors
Prepare the format of statement of profit and loss and explain its items.
Prepare the format of balance sheet and explain the various elements of balance sheet.
Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
Explain the process of preparing income statement and balance sheet.
List any three objectives of analysing financial statements?
Explain the limitations of financial statements.
‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss.
Explain the nature of the financial statements.
What do you mean by Ratio Analysis?
List the techniques of Financial Statement Analysis.
What does a Bearer Debenture mean?
What are various types of ratios?
Distinguish between Vertical and Horizontal Analysis of financial data.
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
State the meaning of Analysis and Interpretation.
What is meant by ‘Issue of debentures for consideration other than cash’?
Explain the different types of debentures?
What is discount on issue of debentures?
Explain the guidelines of SEBI for creating Debenture Redemption Reserve.
List the techniques of Financial Statement Analysis.
Explain how common size statements are prepared giving an example.
What is meant by redemption of debentures?
What is meant by ‘Premium on Redemption of Debentures’?
The current ratio provides a better measure of overall liquidity only when a
firm’s inventory cannot easily be converted into cash. If inventory is liquid, the
quick ratio is a preferred measure of overall liquidity. Explain.
Under which head is the ‘Debenture Redemption Reserve’ shown in the balance sheet?
State the meaning of ‘Debentures issued as a collateral security’.