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

Under which head following items of a non-financial company will be classified:
  1. Sales.
  2. Interest on Loans given.
  3. Dividend income.
  4. Sale of miscellaneous items.
  5. Refund of Income Tax.
  6. Revenue from services rendered.
Calculate 'Cash from operating activities' from the following balances:

Operating profit before working capital changes was ₹ 1,30,000
Total Debt ₹ 40,00,000; Share Capital ₹ 15,00,000; Reserve and Surplus ₹ 8,00,000; Current Liabilities ₹ 5,00,000; Working Capital ₹ 7,00,000. Calculate Total Assets to Debt Ratio.
Quick Ratio 2.2; Current Assets ₹ 40,000; Inventory ₹ 32,000. Calculate Current Assets.
Sonia Ltd. issued a prospectus inviting application for 1,00,000 shares of ₹ 10 each. It received the following applications:
Applications for 40,000 shares (applying for 200 shares or less)
Applications for 1,80,000 shares (applying for more than 200 shares)
The Company allotted the shares proportionately to all the applicants. State the value affected by such decision. Suggest a better alternative for the same.
Calculate Total Assets to Debt Ratio from the following information:
Particulars
Particulars
Total Assets.
15,00,000
Bills Payable.
60,000
Total Debts.
12,00,000
Bank Overdraft.
50,000
Creditors.
90,000
Outstanding Expenses.
20,000
Sony Ltd. provides you the following information. Calculate Cash flows from financing activities:

Additional Information:
  1. During the year 2017-18, Sony Ltd. issued bonus shares in the ratio of 4 : 1 by capitalising reserve.
  2. 10% Debentures were redeemed on 1 Jan., 2018 at a premium of 5%.
  3. Preference Dividend paid ₹ 8,000.
  4. Dividend received on Investments ₹ 10,000.
Current Ratio 2.5 : 1; Quick Ratio 1 : 1; Current Assets ₹ 5,00,000. Calculate Current Liabilities; Liquid Assets and Inventory.
Fill in the blank spaces in the following Journal entries:
Shiva Ltd. issued 1,00,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share. The whole amount was payable on application. The issue was fully subscribed. Pass necessary Journal entries.