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प्रश्न
What are Comparative Financial Statements?
उत्तर
Those financial statements that enable intra-firm and inter-firm comparisons of financial statements over a period of time are called Comparative Financial Statements. In other words, these statements help the accounting users to evaluate and assess the financial progress in the relative terms. These statements express the absolute figures, absolute change and the percentage change in the financial items over a period of time. Comparative Financial Statements present the financial data in such a manner that is easily understandable and can be analysed without any ambiguity. If the accounting policies and practices for the treatment of the items are same over the period of study, only then the Comparative Financial Statements enable meaningful comparisons.
The following are the two Comparative Financial Statements that are commonly prepared:
1. Comparative Balance Sheet
2. Comparative Income Statements
APPEARS IN
संबंधित प्रश्न
Describe the different techniques of financial analysis.
Following are the balance sheets of Beta Ltd. at March 31st, 2016 and 2017:
| Particulars | 2016 Rs. |
2017 Rs. |
| I. Equity and Liabilities |
|
|
|
1. Shareholders' Funds |
||
|
(a) Share capital |
4,00,000 | 3,00,000 |
|
(b) Reserves and surplus |
1,50,000 | 1,00,000 |
|
2. Non-Current Liabilities |
||
|
(a) Loan from IDBI |
3,00,000 | 1,00,000 |
|
3. Current Liabilities |
||
|
(a) Short-term borrowings |
70,000 | 50,000 |
|
(b) Trade payables |
60,000 | 30,000 |
|
(c) Other current liabilities |
1,10,000 | 1,00,000 |
|
(d) Short-term provisions |
10,000 | 20,000 |
| Total | 11,00,000 | 7,00,000 |
| II. Assets |
|
|
|
1. Non-Current Liabilities |
||
|
(a) Fixed assets |
4,00,000 | 2,20,000 |
|
(b) Non-current investments |
2,25,000 | 1,00,000 |
|
2. Current Assets |
||
|
(a) Current investments |
80,000 | 60,000 |
|
(b) Stock |
1,05,000 | 90,000 |
|
(c) Trade receivables |
90,000 | 60,000 |
|
(d) Cash and cash equivalents |
1,00,000 | 85,000 |
|
(e) Short term loans and advances |
1,00,000 | 85,000 |
| Total | 11,00,000 | 7,00,000 |
You are required to prepare a Comparative Balance Sheet.
Following is the summarised Balance Sheet of Wye Ltd. as at 31st March, 2019:
|
Particulars |
Note No. |
31st March, (₹) |
31st March, (₹) |
| I. EQUITY AND LIABILITIES | |||
|
1. Shareholders' Funds |
|
||
|
(a) Share Capital: |
|
|
|
|
(i) Equity Share Capital |
4,00,000 |
4,00,000 | |
|
(ii) Preference Share Capital |
1,00,000 | 1,00,000 | |
|
(b) Reserves and Surplus |
1,20,000 | 1,10,000 | |
|
2. Non-Current Liabilities |
|||
|
(a) Long-term Borrowings |
1. | 4,50,000 | 4,50,000 |
|
(b) Long-term Provisions |
50,000 | 1,00,000 | |
|
3. Current Liabilities |
|||
|
(a) Trade Payables (Creditors) |
5,30,000 | 3,30,000 | |
|
(b) Short-term Provisions |
|
50,000 |
50,000 |
|
Total |
17,00,000 |
15,40,000 | |
| II. ASSETS |
|
||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets (Tangible) |
9,90,000 | 10,40,000 | |
|
(b) Non-Current Investments |
1,00,000 | 1,00,000 | |
|
2. Current Assets |
|||
|
(a) Trade Receivables |
5,00,000 | 3,00,000 | |
|
(b) Cash and Cash Equivalents |
2 |
1,10,000 |
1,00,000 |
|
Total |
17,00,000 |
15,40,000 |
Notes to Accounts
|
Particulars |
31st March, (₹) |
31st March, (₹) |
| I. Long-term Borrowings | ||
|
Bank Loan |
3,50,000 |
4,50,000 |
|
8% Debentures |
1,00,000 |
... |
|
4,50,000 |
4,50,000 | |
| 2. Cash and Cash Equivalents | ||
|
Bank Balance |
1,00,000 |
90,000 |
|
Cash in Hand |
10,000 |
10,000 |
|
1,10,000 |
1,00,000 |
You are required to comment upon the changes in absolute figures from one period to another.
Which of the following is not a tool of financial analysis?
What are the most commonly used techniques of financial analysis?
Common size analysis is also known as _____ analysis.
Comparative analysis is also known as ______ analysis.
The analysis of actual movement of money inflow and outflow in an organization is called ______ analysis.
Consider the following statements.
Statement 1 - Ratio analysis helps in assessing the strengths and weaknesses in the performance of a business enterprise.
Statement 2 - "Ratio analysis is a tool for analyzing the financial statements of any enterprise."
What is the procedure for calculating trend percentage?
Consider the following statements.
Statement 1 - "Cash Flow Statement is a tool of financial statement analysis".
Statement 2 - Cash flow statement is usually prepared by companies which comes as a tool in the hands of users of financial information to know about the sources and uses of cash.
In cash flows, when a firm invests in Fixed Assets and Short-term Financial Investments results in:
Techniques which are used to identify financial statements trends include:
Vertical Analysis is also known as ______.
Pick the odd one out:
Ratios provide a ______ measure of a company's performance and condition.
In a Common Size Balance Sheet, Total Liabilities are assumed to be equal to ______.
