Which of the following statements is not true?

(a)

Notes and schedules also form part of financial statements

(b)

The tools of financial statement analysis include common-size statement

(c)

Trend analysis refers to the study of movement of figures for one year

(d)

The common–size statements show the relationship of various items with somecommon base, expressed as percentage of the common base

The term ‘fund’ refers to

(a)

Current liabilities

(b)

Working capital

(c)

Fixed assets

(d)

Non-current assets

Which of the following statements is not true?

(a)

All the limitations of financial statements are applicable to financial statement analysis also.

(b)

Financial statement analysis is only the means and not an end.

(c)

Expert knowledge is not required in analysing the financial statements

(d)

Interpretation of the analysed data involves personal judgement

In a common-size balance sheet, if the percentage of non-current assets is 75, what would be the percentage of current assets?

(a)

175

(b)

125

(c)

25

(d)

100

Expenses for a business for the first year were Rs. 80,000. In the second year, it was increased to Rs. 88,000. What is the trend percentage in the second year?

(a)

10 %

(b)

110 %

(c)

90 %

(d)

11%

From the following particulars, prepare comparative income statement of Abdul Co. Ltd.

Particulars	2015-16 Rs.	2016-17 Rs.
Revenue from operations	3,00,000	3,60,000
Other income	1,00,000	60,000
Expenses	2,00,000	1,80,000
Income tax	30%	30%

What is working capital?

When is trend analysis preferred to other tools?

From the following particulars of Mani Ltd an Kani Ltd prepare a common-size income statement for the year ended 31^st March, 2019

Particulars	Mani Ltd	Kani Ltd
	Rs.	Rs.
Revenue from operations	2,00,000	2,50,000
Other income	30,000	25,000
Expenses	1,10,000	1,25,000

From the following particulars of Siva Ltd, prepare common size income statement for the years ended 31st March, 2016 and 31st March, 2017.

Particulars	2015-16	2016-17
	Rs.	Rs.
Revenue from operations	2,00,000	3,00,000
Other income	25,000	75,000
Expenses	2,50,000	1,50,000
Income tax %	40	40

Prepare common-size balance sheet of Maria Ltd. as on 31^st March, 2018.

Particulars	31st March 2018
	Rs.
I EQUITY AND LIABILITIES
Shareholders’ funds	4,00,000
Non-current liabilities	3,20,000
Current liabilities	80,000
Total	8,00,000
II ASSETS
Non-current assets	6,00,000
Current assets	2,00,000
Total	8,00,000

From the following particulars of Neithal Ltd, calculate trend percentages.

Particulars	Rs.in lakhs
	2015-16	2016-17	2017-18
Revenue from operations	150	135	90
Other income	25	5	15
Expenses	125	75	50
Income tax	40%	40%	40%

Compute trend percentages for the following particulars of Boomi Ltd

Particulars	Rs.in lakhs
	Year 1	Year 2	Year 3
I EQUITY AND LIABILITIES
1. Shareholders’ fund
a) Share capital	200	254	212
b) Reserves and surplus	60	60	90
2. Non-current liabilities
Long-term borrowings	140	154	168
3. Current liabilities
Trade payables	40	60	80
Total	440	528	550
II ASSETS
1. Non-current assets
a) Fixed assets	200	236	206
b) Non - current investments	80	100	120
2. Current assets
Inventories	120	132	144
Cash and cash equivalents	40	60	80
Total	440	528	550