Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Analysis of Financial Statement NCERT Solutions | State the meaning of Analysis and Interp

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.

Explain how common size statements are prepared giving an example.

What is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.

List the techniques of Financial Statement Analysis.

What do you mean by Common Size Statements?

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’?

What is meant by ‘Issue of debentures for consideration other than cash’?

What is meant by redemption of debentures by ‘Purchase in the Open Market’?

Explain the different terms for the issue of debentures with reference to their redemption.

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

What is meant by a ‘Irredeemable Debenture’?

Explain the guidelines of SEBI for creating Debenture Redemption Reserve.

Differentiate between redemption of debentures out of capital and out of profits.

Describe the meaning of ‘Debenture Issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?

Explain the different types of debentures?

Describe the steps for creating Sinking Fund for redemption of debentures.