Financial Statement Analysis Model Question Paper

12th Standard EM

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Accountancy

Time : 01:30:00 Hrs
Total Marks : 50
    6 x 1 = 6
  1. Which of the following tools of financial statement analysis is suitable when data relating to several years are to be analysed?

    (a)

    Cash flow statement

    (b)

    Common size statement

    (c)

    Comparative statement

    (d)

    Trend analysis

  2. Which of the following is not a tool of financial statement analysis?

    (a)

    Trend analysis

    (b)

    Common size statement

    (c)

    Comparative statement

    (d)

    Standard costing

  3. The term ‘fund’ refers to

    (a)

    Current liabilities

    (b)

    Working capital

    (c)

    Fixed assets

    (d)

    Non-current assets

  4. 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

  5. Which statement are prepared by the business concerns at the end of the accounting period to ascertain the operating results and the financial position?

    (a)

    Trend analysis

    (b)

    Income statement

    (c)

    Financial statement

    (d)

    Balance sheet

  6. The term fund refers to

    (a)

    Working capital

    (b)

    Opening capital

    (c)

    Closing capital

    (d)

    None of these

  7. 2 x 2 = 4
  8. Assertion (A) : Financial statements are the statements prepared by the business concerns at the end of the accounting period.
    Reason (R) : Financial statements are prepared based on historical cost.
    (a) Both (A) and (B) are true and (R) is the correct explanation of (A)
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
    (c) (A) is true but (R) is false
    (d) (A) is false, but (R) is true

  9. Assertion (A) : Cash flow analysis is concerned with preparation of cash flow statement which shows the inflow and outflow of cash and cash equivalents in a given period of time.
    Reason (R) : Funds flow analysis is useful in judging the credit worthiness, financial planning and preparation of budgets.
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A)
    (c) (A) is true, but (R) is false
    (d) (A) is false, but (R) is true

  10. 5 x 2 = 10
  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%
  12. What are financial statements?

  13. List the tools of financial statement analysis.

  14. What is working capital?

  15. What is trend analysis?

  16. 5 x 3 = 15
  17. From the following particulars of Mani Ltd an Kani Ltd prepare a common-size income
    statement for the year ended 31st 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
  18. Prepare common-size balance sheet of Maria Ltd. as on 31st 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
  19. ‘Financial statements are prepared based on the past data’. Explain how this is a limitation.

  20. Briefly explain any three limitations of financial statements

  21. Explain the procedure for preparing common-size statement

  22. 3 x 5 = 15
  23. Calculate trend percentages for the following particulars of Kurinji Ltd.

    Particulars Rs.in thousands
      2015-16 2016-17 2017-18
    Revenue from operations 120 132 156
    Other income 50 38 65
    Expenses 100 135 123
  24. From the following particulars, prepare comparative income statement of Arul Ltd.

    Particulars 2015-16
    Rs.
    2016-17
    Rs.
    Revenue from operations 50,000 60,000
    Other income 10,000 30,000
    Expenses 40,000 50,000
  25. From the following particulars, prepare comparative statement of financial position of Kala Ltd.

    Particulars 31st March, 2017 31st March, 2018
      Rs. Rs.
    I EQUITY AND LIABILITIES    
    1. Shareholders’ Fund    
    a) Share capital 3,00,000 3,60,000
    b) Reserves and surplus 50,000 50,000
    2. Non-current liabilities    
    Long-term borrowings 50,000 40,000
    3. Current liabilities    
    Trade payables 20,000 12,000
    Total 4,20,000  4,20,000
    II ASSETS    
    1. Non-current assets    
    a) Fixed assets 2,50,000 2,90,000
    b) Non - current investments 50,000 40,000
    2. Current assets    
    Inventories 80,000 1,00,000
    Cash and cash equivalents 40,000 32,000
    Total 4,20,000 4,62,000

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