Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Analysis of Financial Statement NCERT Solutions | What are Comparative Financial Statement

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.

State the meaning of Analysis and Interpretation.

List the techniques of Financial Statement Analysis.

What do you mean by Common Size 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’?

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

Explain the guidelines of SEBI for creating Debenture Redemption Reserve.

How would you deal with ‘Premium on Redemption of Debentures?

State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors

What is meant by redemption of debentures?

What is meant by a ‘Irredeemable Debenture’?

Under which head is the ‘Debenture Redemption Reserve’ shown in the balance sheet?

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

What is ‘Capital Reserve’?

What is discount on issue of debentures?