Question:
What is meant by analysis of financial statements?
What is meant by analysis of financial statements?
Show Hint
Analysis = interpretation + evaluation of Balance Sheet and P& L.
Updated On: Sep 13, 2025
Hide Solution
Verified By Collegedunia
Solution and Explanation
Step 1: Define.
Analysis = breaking complex financial data into meaningful parts.
Step 2: Purpose. - To know earning capacity. - To judge liquidity, solvency and stability. - To provide useful information to management and investors.
Final Answer: \[ \boxed{\text{Systematic examination of financial data for decisions}} \] % Quciktip
Step 2: Purpose. - To know earning capacity. - To judge liquidity, solvency and stability. - To provide useful information to management and investors.
Final Answer: \[ \boxed{\text{Systematic examination of financial data for decisions}} \] % Quciktip
Was this answer helpful?
0
0
Top Questions on Financial Statement Analysis
- Which of the following is not the method of financial statement analysis?
- Bihar Board XII - 2025
- Accountancy
- Financial Statement Analysis
- Gross profit ratio of a company was 25%. Its credit revenue from operations was Rs. 20,00,000 and its cash revenue from operations was 20% of the total revenue from operations. If the indirect expenses of the company were Rs. 50,000, calculate its net profit.
- CUET (UG) - 2025
- Accountancy
- Financial Statement Analysis
- Which analysis is a judgemental process which aims to estimate current and past financial positions and the results of the operation of an enterprise, with primary objective of determining the best possible estimates and predictions about the future conditions?
- CUET (UG) - 2025
- Accountancy
- Financial Statement Analysis
- Which of the following indicate limitation of financial analysis:
- CUET (UG) - 2025
- Accountancy
- Financial Statement Analysis
- From the following information obtained from the books of KVK Ltd., calculate Net Assets Turnover Ratio and Debt Equity Ratio:
Information Table
Information Amount (₹) Preference Share Capital 8,00,000 Equity Share Capital 12,00,000 General Reserve 2,00,000 Balance in Statement of Profit and Loss 6,00,000 15% Debentures 4,00,000 12% Loan 4,00,000 Revenue from Operations 72,00,000 - CBSE CLASS XII - 2025
- Accountancy
- Financial Statement Analysis
View More Questions
Questions Asked in Bihar Board XII exam
- Find \( \tan^{-1} (\sqrt{3}) - \cot^{-1} (-\sqrt{3}) \).
- Bihar Board XII - 2025
- Inverse Trigonometric Functions
- Find \( \sin \left( \sin^{-1} \frac{2}{3} \right) + \tan^{-1} \left( \tan \frac{3\pi}{4} \right) \).
- Bihar Board XII - 2025
- Inverse Trigonometric Functions
- Find \( \tan^{-1} \left( \frac{1}{2} \right) + \tan^{-1} \left( \frac{1}{3} \right) \).
- Bihar Board XII - 2025
- Inverse Trigonometric Functions
- If \( \sin \left( \sin^{-1} \frac{1}{5} \right) + \cos^{-1} x = 1 \), find \( x \).
- Bihar Board XII - 2025
- Inverse Trigonometric Functions
- Multiply the matrices: \[ \left[ \begin{matrix} 1 & 2 \\ 3 & 4 \end{matrix} \right] \left[ \begin{matrix} 1 & 0 \\ 0 & 1 \end{matrix} \right] \]
- Bihar Board XII - 2025
- Matrix Operations
View More Questions