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.

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

Explain how common size statements are prepared giving an example.

What do you mean by Common Size Statements?

List the techniques of Financial Statement Analysis.

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’?

Explain the guidelines of SEBI for creating Debenture Redemption Reserve.

Explain the different types of debentures?

The average age of inventory is viewed as the average length of time inventory is held by the firm or as the average number of days’ sales in inventory. Why?

Name the head under which ‘discount on issue of debentures’ appears in the balance sheet of a company.

What is meant by redemption of debentures by conversion?

Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?

Explain in detail about the significance of the financial statements.

What are various types of ratios?

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 is meant by conversion of debentures? Describe the method of such a conversion.