Question
What is meant by Trend Percentage Analysis?

Answer

Trend percentages are very useful in making comparative study of the financial statements for a number of years. These indicate the direction of movement over a long time and help an analyst of financial statements to form an opinion as to whether favourable or unfavourable tendencies have developed. This helps in future forecasts of various items.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Similar questions

Calculate 'Cash from operating activities' from the following balances:

Operating profit before working capital changes was ₹ 1,30,000
Following is the position of Current Assets and Current Liabilities of X Ltd.:

The company incurred a loss of ₹ 37,000 during the year. Calculate 'Cash from operating activities'.
2,000 Equity Shares of ₹ 10 each were issued to Limited from whom assets of ₹ 25,000 were acquired. Pass Journal entry.
Revenue from Operations: Cash Sales ₹ 4,20,000; Credit Sales ₹ 6,00,000; Return ₹ 20,000. Cost of Revenue from Operations or Cost of Goods Sold ₹ 8,00,000. Calculate Gross Profit Ratio.
Name the items that are shown Long-term Borrowings.
Calculate Operating Profit Ratio in the following cases:
i.
Revenue from Operations (Sales) ₹ 7,50,000; Operating Profit ₹ 3,00,000.
ii.
Revenue from Operations (Sales).
Cost of Revenue from Operations.
Operating Expenses.
₹ 15,00,000
₹ 12,40,000
₹ 35,000
iii.
Revenue from Operations (Sales).
Gross Profit.
Operating Expenses.
₹12,00,000
20% on Sales.
₹ 30,000
Pass journal entries in the following cases:
A Co.Ltd. issued ₹ 40,000; 12% Debentures at a discount of 10% redeemable at par
X Ltd forfeited 1,000 Equity shares of ₹ 10 each issued at a premium of ₹ 3 per share for the non-payment of final call of ₹ 6 (including premium) per share. The forfeited shares were re-issued as fully paid up for ₹ 7 per share.
Pass necessary journal entries in the books of the company.
From the following Balance Sheet of X Ltd., calculate Current Ratio:BALANCE SHEET
as at 31st March, 2018
Jain Ltd purchased machinery costing ₹ 10,00,000 from Ayer Ltd. 50% of the payment was made by cheque and for the remaining 50, the company issued Equity Shares of ₹ 100 each at a premium of 25%.
Pass necessary Journal entries in the books of Jain Ltd. for the above transaction.