Analysis of Financial Statements

25 solved questions from Class 12 Accountancy, each with the full working. Tap any question to see the step-by-step solution.

• 1 What is the primary topic or theoretical principle explored in 'Analysis of Financial Statements' (Class 12 ACCOUNTANCY)? medium MCQ Chapter Core Principle
• 2 Which key mechanism or analytical rule is highlighted in 'Analysis of Financial Statements'? medium MCQ Key Analytical Mechanism
• 3 What is the primary topic or principle explained in 'Analysis of Financial Statements' (Class 12 Accountancy)? medium MCQ Chapter Core Concept
• 4 Which key observation or fact is central to understanding 'Analysis of Financial Statements'? medium MCQ Key Fact & Mechanism
• 5 Why is the study of 'Analysis of Financial Statements' important for students of Class 12? medium MCQ Learning Significance
• 6 What is a common application or real-world example related to 'Analysis of Financial Statements'? medium MCQ Real World Application
• 7 What key takeaway should students retain after completing 'Analysis of Financial Statements'? medium MCQ Chapter Summary & Takeaway
• 8 A profit‑and‑loss account of ABC Enterprises for the year shows: - Sales: Rs. 8,00,000 - Cost of Goods Sold: Rs. 5,20,000 - Administrative Expenses: Rs. 80,000 - Selling Expenses: Rs. 60,000 - Net Profit: Rs. 80,000 Prepare a common‑size (percentage) statement of profit and loss, expressing each item as a percentage of sales. easy 2 marks Common‑size profit‑and‑loss statement
• 9 The following information is extracted from a company’s financial statements for the year: - Opening Working Capital: Rs. 1,20,000 - Closing Working Capital: Rs. 1,80,000 - Net Profit after Tax: Rs. 90,000 - Depreciation (non‑cash expense): Rs. 30,000 - Sale of a fixed asset for cash: Rs. 50,000 (book value Rs. 35,000) Calculate the net funds available for the company after accounting for the change in working capital. medium 3 marks Fund flow statement – net funds calculation
• 10 A company has current assets of Rs. 4,80,000 and current liabilities of Rs. 3,00,000. What is the current ratio? easy MCQ 1 mark Current ratio calculation
• 11 A company has the following information: Opening working capital Rs. 1,00,000, Closing working capital Rs. 1,50,000, Net profit after tax Rs. 1,20,000, Depreciation Rs. 40,000, Sale of a fixed asset for cash Rs. 80,000 (book value Rs. 55,000). Compute the net funds available to the company after considering the change in working capital. hard 5 marks Net Funds Available
• 12 Prepare a common‑size statement of profit and loss for the following data: Sales Rs. 12,00,000; Cost of Goods Sold Rs. 7,20,000; Gross Profit Rs. 4,80,000; Administrative Expenses Rs. 1,20,000; Selling Expenses Rs. 90,000; Net Profit Rs. 3,00,000. Express each item as a percentage of sales. medium 3 marks Common‑Size Analysis
• 13 Which of the following ratios best measures a company's ability to meet its short‑term obligations without raising new external capital? hard MCQ 3 marks Liquidity Ratio
• 14 What is the current ratio of a company whose current assets are Rs. 6,40,000 and current liabilities are Rs. 2,80,000? easy 1 mark Current Ratio
• 15 Which of the following ratios best measures a company's ability to meet its short‑term obligations without raising new external capital? easy MCQ 1 mark Liquidity ratio identification
• 16 A company’s financial data for the year are as follows: Opening Working Capital = Rs. 1,30,000 Closing Working Capital = Rs. 1,90,000 Net Profit after Tax = Rs. 1,05,000 Depreciation (non‑cash) = Rs. 45,000 Sale of machinery for cash = Rs. 1,20,000 (book value Rs. 80,000) Purchase of new equipment for cash = Rs. 1,00,000 Compute the net funds available to the company after considering the change in working capital and fixed‑asset transactions. hard 4 marks Fund flow statement computation
• 17 Prepare a common‑size statement of profit and loss for the following data, expressing each item as a percentage of sales: Sales = Rs. 15,00,000 Cost of Goods Sold = Rs. 9,00,000 Administrative Expenses = Rs. 1,20,000 Selling Expenses = Rs. 1,50,000 Net Profit = Rs. 2,30,000 medium 2 marks Common‑size profit‑and‑loss statement
• 18 A company has current assets of Rs. 5,20,000 and current liabilities of Rs. 2,60,000. Calculate its current ratio. easy 1 mark Current ratio calculation
• 19 A manufacturing firm has current assets worth Rs. 7,80,000 and current liabilities of Rs. 3,10,000. What is its current ratio? easy 1 mark Liquidity ratio – Current Ratio
• 20 A company’s financial data for the year are as follows: - Opening Working Capital = Rs. 2,00,000 - Closing Working Capital = Rs. 2,60,000 - Net Profit after Tax = Rs. 1,10,000 - Depreciation (non‑cash) = Rs. 30,000 - Sale of machinery for cash = Rs. 1,00,000 (book value Rs. 60,000) - Purchase of new equipment for cash = Rs. 1,20,000 Compute the net funds available to the company after considering the change in working capital and fixed‑asset transactions. medium 3 marks Working‑capital analysis and cash flow from operations
• 21 Prepare a common‑size statement of profit and loss for the following data, expressing each item as a percentage of sales: - Sales = Rs. 12,00,000 - Cost of Goods Sold = Rs. 7,20,000 - Administrative Expenses = Rs. 1,00,000 - Selling Expenses = Rs. 80,000 - Net Profit = Rs. 1,20,000 hard 5 marks Common‑size financial statements
• 22 Which of the following ratios best measures a company’s ability to meet its short‑term obligations without raising new external capital? easy MCQ 2 marks Liquidity ratios – Quick ratio
• 23 Which of the following ratios best measures a company’s ability to meet its short‑term obligations without raising new external capital? easy MCQ 1 mark Liquidity ratios
• 24 Prepare a common‑size statement of profit and loss for the following data, expressing each item as a percentage of sales: Sales = Rs. 20,00,000; Cost of Goods Sold = Rs. 12,00,000; Administrative Expenses = Rs. 1,50,000; Selling Expenses = Rs. 1,20,000; Net Profit = Rs. 2,00,000. medium 2 marks Common‑size statements
• 25 What is the current ratio of a company whose current assets are Rs. 5,00,000 and current liabilities are Rs. 2,00,000? easy 1 mark Current ratio