What are various types of ratios?
The various kinds of financial ratios available may be broadly grouped into the following six silos, based on the sets of data they provide:
1)Liquidity Ratios.
2)Solvency Ratios.
3)Profitability Ratios.
4)Efficiency Ratios.
5)Coverage Ratios.
6)Market Prospect Ratios.
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
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.
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
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.
Explain the limitations of financial statements.
State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors
What are liquidity ratios? Discuss the importance of current and liquid ratio.
What do you mean by Ratio Analysis?
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
Explain in detail about the significance of the financial statements.
What do you mean by Ratio Analysis?
Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
Explain the limitations of financial statements.
State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors
Explain how common size statements are prepared giving an example.
What do you understand by analysis and interpretation of financial statements? Discuss its importance.
Explain the usefulness of trend percentages in interpretation of financial performance of a company.
Describe the different techniques of financial analysis and explain the limitations of financial analysis.