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CBSE Accountancy 12th Accountancy Chapter 3 - Analysis of Financial Statements: CBSE Class 12 Analysis of Financial Statement introduces students to the importance of financial analysis and understanding the financial situation of a company. The chapter includes different types of tools used by Accountants. The tools are needed to analyze the financial statements that help in making decisions. It is necessary to understand the financial health of an organization that can help in evaluating the overall performance of the company. Through the chapter, students will get knowledge of different topics such as profitability ratio, financial ratio, and more.
The chapter includes uses and objectives of financial statements. The students also learn about the parties interested in it. They can also get information about types and process of financial statement analysis. In the exams, students might also get questions related to the limitations of financial statement analysis. There will be questions of 12 marks in the board exams. The students will have to answer short and long questions.
Q.1 - State any two limitations of financial statement analysis.
Q.2 - What is meant by analysis of financial statements?
Q.3 - Explain the importance of financial analysis of
(i) labour unions
(ii) creditors.
Q.4 - What is meant by ‘analysis of financial statements’? State any two objectives of such an analysis.
Q.5 - From the following information, prepare a comparative statement of profit and loss.
Particulars | Amt (₹) | Amt (₹) |
|---|---|---|
Revenue from Operations | 7,00,000 | 8,50,000 |
Materials Consumed | 3,30,000 | 4,20,000 |
Manufacturing and Office Expenses | 2,40,000 | 2,60,000 |
Other Incomes | 30,000 | 30,000 |
Q.6 - Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking.
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