Notes and schedules also form part of financial statements.
The tools of financial statement analysis include common-size statement
Trend analysis refers to the study of movement of figures for one year
The common–size statements show the relationship of various items with some common base, expressed as percentage of the common base
Balance sheet provides information about the financial position of a business concern---------------------------
Over a period of time
As on a particular date
For a period of time
For the accounting period
Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analysed?
Cash flow statement
Common size statement
Comparative statement
Trend analysis
The financial statements do not exhibit-------------------------------------
Non-monetary data
Past data
Short term data
Long term data
Which of the following is not a tool of financial statement analysis?
Trend analysis
Common size statement
Comparative statement
Standard costing
The term ‘fund’ refers to---------------------------------------------------
Current liabilities
Working capital
Fixed assets
Non-current assets
Which of the following statements is not true?
All the limitations of financial statements are applicable to financial statement analysis also.
Financial statement analysis is only the means and not an end.
Expert knowledge is not required in analysing the financial statements.
Interpretation of the analysed data involves personal judgement.
A limited company’s sales has increased from ` 1,25,000 to ` 1,50,000. How does this appear in comparative income statement?
+ 20 %
+ 120 %
– 120 %
– 20 %
In a common-size balance sheet, if the percentage of non-current assets is 75, what would be the percentage of current assets?
175
125
25
100
Expenses for a business for the first year were ` 80,000. In the second year, it was increased to ` 88,000. What is the trend percentage in the second year?