Prepare the format of statement of profit and loss and explain its items.
Only the revenue or expenses related to the current year are debited or credited to profit and loss account. The profit and loss account starts with gross profit at the credit side and if there is a gross loss, it is shown on the debit side.
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 balance sheet and explain the various elements of balance sheet.
Explain the process of preparing income statement and balance sheet.
Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
List any three objectives of analysing financial statements?
State the meaning of financial statement analysis?
Explain the limitations of financial statements.
Explain the nature of the financial statements.
‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss.
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’?
Describe the steps for creating Sinking Fund for redemption of 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 how common size statements are prepared giving an example.
What is meant by a ‘Irredeemable Debenture’?
What do you understand by analysis and interpretation of financial statements? Discuss its importance.
How debentures are different from shares? Give two points.
How would you study the Solvency position of the firm?
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.
What are Comparative Financial Statements?