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Question
Give one word/term/phrase for the following statement.
An asset which can be converted into cash immediately.
Solution
Liquid Asset
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RELATED QUESTIONS
Balance sheet is a nominal account.
State the objectives of financial statements from the view point of a business concern.
What do you mean by Analysis of Financial Statement?
One of the objectives of ‘Financial Statements Analysis’ is to identify the reasons for change in the financial position of the enterprise, State two more objectives of this analysis.
State any one limitation of Analysis of Financial Statement.
JW Ltd. was a company manufacturing geysers. As a part of its long-term goal for an expansion, the company decided to identify the opportunity in rural areas. The initial plan was rolled out for Bhiwani village in Haryana. Since the village did not have a regular supply of electricity, the company decided to manufacture solar geysers. The core team consisting of the Regional Manager, Accountant and the Marketing Manager was taken from the Head Office and the remaining employees were selected from the village and neighbourhood areas. At the time of preparation of financial statements, the accountant of the company fell sick and the company debuted a junior accountant temporarily from the village for two months. The Balance Sheet prepared by the junior accountant showed the following items against the Major Heads and Sub-heads mentioned which were not as per Schedule III of the Companies Act, 2013.
| Items | Major Head/Sub-Head |
| Loose Tools | Trade Receivables |
| Cheques in Hand | Current Investments |
| Term Loan from Bank | Other Long-term Liabilities |
| Computer Software | Tangible Fixed Assets |
Identify any two values that the company wants to communicate to the society. Also, present the above items under the correct major heads and sub-heads as per Schedule III of the Companies Act, 2013.
State and explain any 'four objectives' of financial statement analysis from the business point of view.
State the significance of Analysis of Financial Statements to the ‘Lenders’.
From the following information of a club show the amounts of match expenses and match fund in the Financial Statement of the Club for the year ended on 31st March, 2009 and 31st March, 2010.
|
Details |
Amount Rs |
|
Match expenses (Paid during the year 2009-2010) |
30,000 |
|
Match Fund (as on 31-3-2009) |
17,000 |
|
Donation for Match Fund (Received during the year 2009 – 2010) |
9,000 |
|
Proceeds from the sale of match tickets (Received during the year 2009-2010) |
3,000 |
State true or false with reason.
Gross Profit depends upon Net Sales.
State and explain any 'four objectives' of analysis of financial statement from a business concern's point of view.
State whether following statement are true or false :
Financial statements include only balance sheet.
State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.
State whether following statement is true or false :
Government is not interested in analysis of financial statement.
Select the appropriate answer from the alternatives given below & rewrite the completed statement:
The methodical classification of financial statement is called _____________.
Select the appropriate answer from the alternatives given below & rewrite the completed statement
From financial statement analysis, the creditors are interested to know _____________.
Answer the following in brief :
What do you mean by analysis of financial statements?
Answer the following in brief :
State any three limitations of Analysis of financial statement.
State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.
Explain the limitations of analysis of financial statements.
The Common Size Statement requires _________.
Bill Payable is ___________
Give one word/term/phrase for the following statement.
The statement showing financial position for different periods of previous year and current year.
Give one word/term/phrase for the following statement.
Statement showing changes in cash and cash equivalent during a particular period.
State true or false with reason.
Financial Statement includes only Balance Sheet.
State true or false with reason.
Dividend paid is not a source of fund
State true or false with reason.
Ratio analysis measures profitability efficiency and financial soundness of the business.
Answer in one sentence only.
Give any three examples of current assets?
Answer in one sentence only.
State the formula of Cost of goods sold?
Prepare Comparative Balance Sheet for the year ended 31.3.18 and 31.3.19 Assets & Liabilities as follows:
| Particulars | 31.3.18 (₹) | 31.3.19 (₹) |
| 1) Fixed Assets | 120,000 | 1,50,000 |
| 2) Share Capital | 60,000 | 72,000 |
| 3) Current Assets | 28,000 | 27,000 |
| 4) Reserve & Surplus | 24,000 | 30,000 |
| 5) Loan | 34,000 | 57,000 |
| 6) Current liabilities | 30,000 | 24,000 |
Which of the following statements is not true?
Balance sheet provides information about the financial position of a business concern
The term fund’ refers to
Following is the Balance Sheet of Mahi Traders for the year ended 31-3-2018 and 31-3-2019:
| Liabilities | 31-03-2018 (₹) | 31-03-2019 (₹) | Assets | 31-03-2018 (₹) | 31-03-2019 (₹) |
| Equity Share Capital | 1,60,000 | 1,60,000 | Fixed Assets | 2,40,000 | 2,88,000 |
| Pref. Shares Capital | 40,000 | 40,000 | Investment | 40,000 | 40,000 |
| Reserve and Surplus | 40,000 | 48,000 | Current Assets | 1,20,000 | 96,000 |
| Secured Loan | 80,000 | 32,000 | |||
| Unsecured Loan | 40,000 | 72,000 | |||
| Current Liabilities | 40,000 | 72,000 | |||
| 4,00,000 | 4,24,000 | 4,00,000 | 4,24,000 |
Prepare Common Size Balance Sheet for the year 31-03-2018 and 31-03-2019
Convert following Trading Account and Profit and Loss Account into Vertical Income Statement:
| Dr. | Trading, Profit and Loss Account for the year ended as on 31st March,2020 |
Cr. | |
| Particulars | Amount ₹ | Particulars | Amount ₹ |
| To Opening stock | 20,000 | By Sales | 1,20,000 |
| To Purchases | 90,000 | By Closing Stock | 30,000 |
| To Carriage inward | 500 | ||
| To Wages | 10,000 | ||
| To Gross Profit c/d | 29,500 | ||
| Total | 1,50,000 | Total | 1,50,000 |
| To Office expenses | 12,500 | By Gross Profit b/d | 29,500 |
| To Selling expenses | 10,000 | ||
| To Finance expenses | 3,000 | ||
| To Net Profit c/d | 4,000 | ||
| 29,500 | 29,500 | ||
Under which major heads and sub-heads will the following items be presented in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?
- Bills Receivable
- Securities premium reserve
- Calls in advance
It is technique which involves regrouping of data by application of arithmetical relationships. Identify the technique and state any two advantages of the technique identified.
