Analysis of Financial Statements — Accountancy STD 12 Commerce — Question

What is Not Incorrect About Common Size Statements?

1. Common size statements are useful, both, in intra-firm comparisons over different years
2. This analysis is also known as Horizontal Analysis
3. The numbers are brought to common base
4. Percentage calculated can be easily compared with the results of corresponding percentages of the previous year

A Company formed and registered for future projects or to hold an asset or intellectual property rights can apply for registration as ___________.

1. Dummy company
2. Sham company
3. Dormant company
4. Inactive company

Choose the right answer:
An Annual Report is issued by a company to its:

1. Directors.
2. Auditors.
3. Shareholders.
4. Management.

Discount on issue of Debentures is in the nature of:

1. Revenue Loss
2. Capital Loss
3. Deferred Revenue Expenditure
4. None of there

When two or more existing companies combine, together to form a new company, it is ____________.

1. Absorption
2. Amalgamation
3. Reconstruction
4. Merger

On sale of old furniture, owner's equity would ______________.

1. Increase
2. Decrease
3. Remain unchanged
4. May or may not change

Which one of the following ratio is most important for judging the long term solvency of the firm?

1. Debt equity ratio
2. Stock turnover ratio
3. Return on investments
4. Fixed assets turnover ratio

Which of the following is not a part of Finance Cost in Statement of Profit and Loss?

1. Interest on Issue of Debentures
2. Interest Paid on Debentures
3. Interest Paid on Public Deposits
4. Bank SMS Charges

Shares of face value of 10 are 80% paid up. The company declares a dividend of 50%. Amount of dividend per share is equal to ___________.

1. 5
2. 4
3. 80
4. 50

Choose the right answer:
Comparative statement are also known as:

1. Dynamic analysis.
2. Horizontal analysis.
3. Vertical analysis.
4. External analysis.