GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements

   

Gujarat Board GSEB Class 12 Commerce Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements Important Questions and Answers.

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements

Answer the following questions in one sentence only :

Question 1.
Which information is represent by financial statements?
Answer:
Financial statments represent historical informations.

Question 2.
Which are the components of financial statements?
Answer:
The components of financial statements are trading account, profit and loss account, balance sheet, cash flow statement and fund flow statement.

Question 3.
Which is known as income statement?
Answer:
Profit and loss account is known as income statement.

Question 4.
Gross profit is a result of which financial transaction?
Answer:
Gross profit is a result of purchase-sales financial transactions.

Question 5.
Give only name of objectives of financial statements.
Answer:
Objects befind the preparation of financial statement are as under :

  • To know the information about profit and loss of the business entity.
  • To know the financial position of the business entity.
  • To know the cash position of the business entity.
  • To give the financial information to the parties connected with the company.

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 6.
What is external analysis?
Answer:
When published accounts like income statements, balance sheet, report of an auditor or directors are analysed by external parties like potential investors, financial institutions, government agencies, credit rating agencies, research etc. for their investment-related decision or for any other decision , it is known as external analysis.

Question 7.
What is internal analysis?
Answer:
When financial statements are analysed by the management for their decisions, it is known as internal analysis.

Question 8.
Which four different aspects are analysed from the analysis of financial statements?
Answer:
Generally following four aspects are analysed from the analysis of financial statements

  • Profitability
  • Liquidity
  • Solvency
  • Efficiency.

Question 9.
Give only name of stages of analysis of financial statements.
Answer:
Following are the stages of analysis of finanacial statements :

  • New structural Arrangement of financial statement
  • Comparison
  • Analysis and Interpretation.

Question 10.
What does disclose by profitability analysis?
Answer:
Analysis of profitability discloses the earning capacity of business entity.

Question 11.
What does disclose by analysis of liquidity?
Answer:
Analysis of liquidity discloses the short-term solvency of business entity.

Question 12.
What does disclose by analysis of solvency?
Answer:
Analysis of solvency discloses the long-term solvency of business entity.

Question 13.
Which analysis does explain about use of assets?
Answer:
Analysis of efficiency explains about the degree of use of assets.

Question 14.
What is changes in the stock?
Answer:
Changes in the stock means difference of opening and closing stock.
Changes in stock = Opening stock – Closing stock

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 15.
What is the other name of horizontal analysis?
Answer:
Other name of horizontal analysis is time series analysis.

Question 16.
Which information can be obtained through analysis of comparative statements?
Answer:
Through analysis of comparative statements we can get the information about development trend of a business entity.

Question 17.
In which form comparison can be done in comparative statements?
Answer:
In comparative statements, comparison can be done in horizontal form.

Question 18.
In which form comparison of common size statements can be done?
Answer:
In common size statements, comparison can be done in vertical form.

Question 19.
State two important pars of profit and loss statements.
Answer:
Total revenue and total expenses are two important parts of profit and loss statements.

Question 20.
State two important parts of balance sheet.
Answer:
Two important parts of balance sheet are

  1. Equity and Liabilities and
  2. Assets,

Question 21.
While preparing common size statements, what is taken as base for profit and loss statements and balance sheet?
Answer:
While preparing common size statements net sales is taken as base for profit and loss ‘ statements and total of balance sheet is taken as base for balance sheet.

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 22.
In which type of statements 100% is taken as base?
Answer:
In common size statements, 100% is taken as base.

Select the right answer for each question :

Question 1.
In the context of final accounts of an unit by which name of statement, profit and loss account is known?
(A) Income statement
(B)Cash flow statement
(C) Expense statement
(D) Working capital statement
Answer:
(A) Income statement

Question 2.
What is the first object of financial statement?
(A) To know the financial position of the business entity
(B) To know the cash position of the business entity
(C) To know the profit and loss of the business entity
(D) None of the given
Answer:
(C) To know the profit and loss of the business entity

Question 3.
Which statement is prepared to know the profit and loss for a specific period of a business entity?
(A) Working capital statement
(B) Cash flow statement
(C) Income statement
(D) Fund flow statement
Answer:
(C) Income statement

Question 4.
From the following which analysis is show the classification as per parties?
(A) Horizontal Analysis
(B) Internal Analysis
(C) Vertical Analysis
(D) Long-term Analysis
Answer:
(B) Internal Analysis

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 5.
The analysis of financial statements are done for decision making by managements known as ………………….. .
(A) Internal Analysis
(B) External Analysis
(C) Long-term Analysis
(D) Vertical Analysis
Answer:
(A) Internal Analysis

Question 6.
If the comparison of financial statements for different years is done then that analysis is known as …………………… .
(A) External Analysis
(B) Time-series Analysis
(C) Vertical Analysis
(D) Internal Analysis
Answer:
(B) Time-series Analysis

Question 7.
Which analysis is useful to compare the performance of different units of a year?
(A) Horizontal Analysis
(B) Internal Analysis
(C) Vertical Analysis
(D) External Analysis
Answer:
(C) Vertical Analysis

Question 8.
Generally, by which analysis, all types of parties obtained the decisions regarding own investments?
(A) Earning capacity
(B) Efficiency of management
(C) Efficiency
(D) Budget
Answer:
(A) Earning capacity

Question 9.
What is shown by efficiency analysis?
(A) Short-term solvency of business
(B) Long-term solvency of business
(C) Information regarding use usage of assets
(D) Earning capacity of business
Answer:
(C) Information regarding use usage of assets

Question 10.
Which type of analysis is important for taking decision of dividend?
(A) Profitability Analysis
(B) Solvency Analysis
(C) Liquid Analysis
(D) Efficiency Analysis
Answer:
(A) Profitability Analysis

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 11.
What is taken as base in income statement?
(A) Net revenue
(B) Net sales
(C) Net purchase
(D) Total of income statement
Answer:
(B) Net sales

Question 12.
In a company current year expenses ar ₹ 8,00,000 and in the comparison of previous year it has been increased by 25%, then find out the last year expenses.
(A) ₹ 2,00,000
(B) ₹ 6,00,000
(C) ₹ 6,40,000
(D) ₹ 10,00,000
Answer:
(C) ₹ 6,40,000

Question 13.
Current year sales revenue is ₹ 6,00,000 of a company. In the comparison of previous year if has been decrease by 20% then find out the last year sales revenue.
(A) ₹ 1,20,000
(B) ₹ 4,80,000
(C) ₹ 7,20,000
(D) ₹ 7,50,000
Answer:
(A) ₹ 1,20,000

Question 14.
Amount of trade creditors of a company are ₹ 2,25,000. There is a increase of 25% in the comparison of last year. Find out the last year amount of trade creditors.
(A) ₹ 56,250
(B) ₹ 1,80,000
(C) ₹ 2,81,250
(D) ₹ 3,37,500
Answer:
(B) ₹ 1,80,000

Question 15.
Amount of last year long term investment was ₹ 5,00,000. In current year if there is increase/decrease of (4.50%) in it then find out the amount of current year.
(A) ₹ 22,500
(B) ₹ 4,77,500
(C) ₹ 5,22,500
(D) ₹ 4,57,500
Answer:
(B) ₹ 4,77,500

Give answer of the following questions :

Question 1.
Prepare comparative profit-loss statements from the following profit-loss statements of Nayan Ltd. for the year ending on 31-3-2018 and 31-3-2019.

Particulars Note No. 31-3-’19
(₹)
31-3-’18
(₹)
Sales revenue 24,00,000 21,00,000
Other income 4,50,000 3,75,000
Expenses 14,40,000 10,80,000

Answer:

Particulars Increase/ Decrease (₹) Increase/Decrease (%)
(I) Sales revenue 3,00,000 14.29
(II) Other income 75,000 20.00
(III) Total income 3,75,000 15.15
(IV) Expenses 3,60,000 33.33
(V) Profit before tax 15,000 1.08

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 2.
Prepare comparative profit-loss statements from the following profit-loss statements of Binali Ltd. for the year ending on 31-3-2018 and 31-3-2019.
Summarised Profit-Loss statements for the year ending on 31-3-’18 and 31-3-’19

Particulars Note No. 31-3-2019
(₹)
31-3-2018
(₹)
Sales revenue 18,00,000 16,00,000
Other income 4,00,000 3,50,000
Expenses 9,60,000 8,00,000

Income tax rate is 30%
Answer:

Particulars Increase/Decrease(₹) Increase/Decrease (%)
(I) Sides revenue 2,00,000 12.50
(II) Other income 50,000 14.29
(III) Total income 2,50,000 12.82
(IV) Expenses 1,60,000 20.00
(V) Profit before tax 90,000 7.83
(VII) Less: Income tax (30%) 27,000 7.83
(V) Profit after tax 63,000 7.83

Question 3.
Profit and Loss statements of Janki Ltd. for the year ending on 31-3-18 and 31-3-19 are as follows. On the basis of them prepare comparative profit and loss statement.

Particulars Note No. 31-3-2019
(₹)
31-3-2018
(₹)
Sales revenue 21,00,000 12,60,000
Net purchase for resale 12,60,000 8,40,000
Changes in stock 70,000 70,000
Other expenses (% of cost of sales) 10 12
Income tax 30% 30%

Answer:

Particulars Increase/Decrease (₹) Increase/Decrease (%)
(I) Sales revenue 8,40,000 66.67
(II) Expenses :
(i) Net purchase for resale 4,20,000 50.00
(ii) Changes in stock
(iii) Other expenses 23,800 21.79
Total Expenses 4,43,800 43.54
(III) Profit before tax 3,96,200 164.53
(IV) Less: Income tax (30%) 1,18,860 164.53
(V) Profit after tax 2,77,340 164.53

Question 4.
Find out balancing figures of comparative statement of Aanal Ltd. and prepare new comparative statement.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 1
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 2

Question 5.
Find out the balancing figures of common size profit and loss statements of Satyam Ltd. Profit and Loss statements for the year ending on 31-3-2018 and 31-3-2019
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 3
Answer:

Particulars Dt 31-3-2018 (₹) Dt.31-3-2019 (₹)
(I) Sales revenue 25,00,000 30,00,000
(II) Expenses 20,00,00 27,00,000
(III) Profit before tax 5,00,000 3,00,000
(IV) Less: Income tax (30%) 1,15,000 90,000
(V) Profit after tax 3,50,000 2,10,000

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Give answer of the following questions :

Question 1.
The abridge profit and loss statement ending on 31-3-2018 and 31-3-2019 of Parth Limited are given as follows. Prepare comparative statement of profit and loss.
Profit and Loss statements for the years ending on 31-3-’18 and 31-3-’19

Particulars Note No. Dt.31-3-2019
(₹)
Dt.31-3-2018
(₹)
Sales revenue 13,50,000 12,00,000
Other income 3,00,000 1,50,000
Cost of goods sold 4,95,000 4,50,000
Financial cost 90,000 90,000
Depreciation 60,000 60,000
Other expenses 2,70,000 3,00,000

Income tax rate is 30%.
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 4

Question 2.
Profit and loss statements for the year ending on 31-3-2018 and 31-3-2019 of Bina Ltd. are given as under. Prepare comparative statement of profit and loss.
Profit and Loss statement for the year ending on 31-3-’18 and 31-3-’19
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 5
Income tax rate is 30%.
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 6

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 3.
On the basis of following information of Dilpesh Limited, prepare comparative profit and loss statement.

Particulars Note No. 31-3-2019
(₹)
31-3-2018
(₹)
Sales revenue 18,75,000 22,50,000
Net purchase for resale 7,50,000 6,25,000
Changes in stock 2,00,000 1,25,000
Other expenses (% of sale) 45 40
Other income (% of sale) 12 10

Income tax rate is 30%.
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 7

Question 4.
Find out the balancing figures of comparative statement of Bhargav Ltd. and prepare new comparative statement.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 8
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 9

Question 5.
Fill the comparative profit and loss statement of Vaibhavi Ltd. for the year ending on 31-3-’18 and 31-3-’19.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 10
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 11

Question 6.
On the basis of the following profit and loss statement of Aradhana Ltd. prepare common size profit-loss statements.

Particulars Note No. 31-3-2019
(₹)
31-3-2018
(₹)
(I) Sales revenue 60,00,000 48,00,000
(II) Expenses :
(i) Purchase for resale 33,00,000 24,00,000
(ii) Employees benefit expenses 4,00,000 4,80,000
(iii) Financial cost 3,60,000 2,88,000
(iv) Depreciation and amortized amount 4,80,000 4,32,000
Total expenses 45,40,000 36,00,000
(III) Profit before tax 14,60,000 12,00,000
(IV) Less: income (30%) 4,38,000 3,60,000
(V) Profit after tax 10,22,000 8,40,000

Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 12

Question 7.
From the following given profit-loss statements of Parijat Limited prepare common size profit-loss statement.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 13
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 14

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 8.
Fill the following common size profit-loss statements of Aaradhana Limited.
Common size profit-loss statement for the year ending on 31-3-’18 and 31-3-’19
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 15
Answer:

Particulars 31-3-2018
(₹)
31-3-2019
(₹)
(1) Cost of goods consumed 28,12,500 35,10,000
(2) Financial cost 3,60,000 3,60,000
(3) Depreciation 1,12,500 1,80,000
(4) Income tax 1,39,500
(5) Profit after tax 3,25,500

Question 9.
Find out the balancing figures of following common size statements of profit and loss of Aishwarya limited for the year ending on 31-3-’18 and 31-3-’19 and prepare it incomplete form. Common size profit-loss statement for the year ending on 31-3-’18 and 31-3-’19
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 16
Answer:

Particulars 31-3-2018
(₹)
31-3-2019
(₹)
(1) Other income 1,35,000
(2) Total income 14,85,000
(3) Net purchase 9,18,000
(4) Changes in stock (67,500)
(5) Depreciation 94,500
(6) Other expenses 1,08,000
(7) Total expenses 10,53,000
(8) Profit before tax 7,20,000
(9) Less : Income tax 2,16,000
(10) Profit after tax 5,04,000

Give answer of the following questions :

Question 1.
From the balance sheets of Kajal Ltd. of 31-3-2018 and 31-3-2019 prepare comparative balance sheet.
Balance Sheet as on 31-3-2018 and 31-3-2019
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 17
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 18

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 2.
The balance sheet of Ajay Ltd. as at 31-3-2018 and 31-3-2019 are as follows. Prepare a comparative balance sheet.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 19
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 20
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 21

Question 3.
Complete the comparative statement of balance sheets of Sujata Limited for the year ending on 31-3-2018 and 31-3-2019.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 22
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 23
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 24

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 4.
Complete comparative balance sheets of Bharat Company Limited for the year ending on 31-3-2018 and 31-3-2019.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 25
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 26
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 27

Question 5.
From the following given abridge balance sheet as on 31-3-2018 and 31-3-2019 of Radhika Ltd., prepare common size statement of balance sheet.
Balance Sheet as on 31-3-’18 and 31-3-’19
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 28
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 29

Question 6.
Balance sheets of Jay Limited as at 31-3-2018 and 31-3-2019 are as follows. Prepare common size statement of balance sheet.
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 30
Balance Sheets as on 31-3-2018 and 31-3-2019
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 31

Question 7.
The common size balance sheets as at 31-3-2018 and 31-3-2019 with balancing figures of Ashka Limited are as follows. Ascertian balancing figures and complete common size balance sheet.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 32
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 33
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 34

GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 

Question 8.
Find out balancing figures of common size balance sheet as at 31-3-2018 and 31-3-2019 of Dahod Limited.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 35
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 36
Answer:
GSEB Class 12 Accounts Important Questions Part 2 Chapter 4 Analysis of Financial Statements 37

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