Page 1 - Home assignment - tools of Finacial Analysis

CLASS -XII

ACCOUNTANCY

HOME ASSIGNMENT – TOOLS OF FINANCIAL ANALYSIS

Fill in the blanks

01. In ------ statement of Profit &loss, ----- is taken as 100 and all other variables are

expressed as its percentage.
02. When comparative statement of financial statements of an enterprise for two or more

accounting period it is known as -----.

03. ---- is the process of determining and interpreting numerical relationship between figure

of the financial statements.

State whether the following statements are TRUE OR

FALSE

04.COMMON size statement enable horizontal analysis.

05.Comaparative financial statement shows only absolute changes in the figures

06. in case of common size statement, figures of previous year are taken as base for

comparison.

07. Comparative statement of Profit & loss aims to measure increase or decrease in
income and expenses in terms of Rupees as well as in percentage.

08.The 3 Ps, i.e. the three objectives of analysis and interpretation of financial statements are :

Progress, Position and Prospects.
a) True

b) False

VERY SHORT TYPE QUESTION

08. Mansion two tools of financial statement analysis.

09. Which item is assumed to be 100 in case of common size statement of Profit & loss?
10 Which items is assumed to be 100 in case of common size Balance sheet.