List of top Accountancy Questions on Financial Statement Analysis

The following information is obtained from the books of Devdutt Ltd. : Working capital - ₹ 4,00,000
Trade Payables - ₹ 50,000
Other Current liabilities - ₹ 1,00,000
Current assets of Devdutt Ltd. are :
'Analysis of financial statements is useful and significant to different users.' Which of the following users is concerned with a firm's long-term solvency and survival?
From the following information obtained from the books of accounts of Ananda Ltd., calculate 'Quick Ratio' of the company: Total Current Assets (including stock and prepaid expenses) ₹ 2,00,000; Stock ₹ 20,000; Prepaid expenses ₹ 10,000; Current liabilities ₹ 1,70,000.
Which of the following is not a tool of financial statement analysis?
List any three features of a 'Cash Flow Statement'.
‘Net Asset Turnover’ ratio of a company is 2 times. State with reason whether the following transactions will increase, decrease or not affect the ratio:
Cash sales ₹ 3,00,000
Issue of equity shares ₹ 10,00,000
Issue of 9% debentures ₹ 5,00,000
Credit purchase of goods ₹ 50,000
Which of the following is not a feature of Tailored accounting software?
The following information was extracted from the Statement of Profit and Loss of Chaman Ltd. for the year ended 31st March, 2025:
Prepare a Comparative Statement of Profit and Loss.
From the following information, calculate 'Proprietary Ratio' and 'Debt-to-Equity Ratio':
Which of the following indicate limitation of financial analysis:
Which analysis is a judgemental process which aims to estimate current and past financial positions and the results of the operation of an enterprise, with primary objective of determining the best possible estimates and predictions about the future conditions?
In Common size Balance Sheet, percentage of various items is expressed as a percentage of:
Comparative Statements are also known as:
Gross profit ratio of a company was 25%. Its credit revenue from operations was Rs. 20,00,000 and its cash revenue from operations was 20% of the total revenue from operations. If the indirect expenses of the company were Rs. 50,000, calculate its net profit.
Which of the following statements is correct?
The tool of ‘Analysis of Financial Statements’ which indicates the trend and direction of financial position and operating results is:
From the following information obtained from the books of KVK Ltd., calculate Net Assets Turnover Ratio and Debt Equity Ratio:

Information Table

Information Amount (₹)
Preference Share Capital8,00,000
Equity Share Capital12,00,000
General Reserve2,00,000
Balance in Statement of Profit and Loss6,00,000
15% Debentures4,00,000
12% Loan4,00,000
Revenue from Operations72,00,000
From the following Balance Sheet of Nayak Ltd., prepare a Comparative Balance Sheet as at 31stMarch, 2024.
Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are called :
Which of the following is not a purpose of analysis of financial statements?
Operating ratio of a company is 63%. Its gross profit ratio is 20%. What will be its operating profit ratio?
Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:
(a) Prepaid expenses
(b) Capital Work-in-Progress
(c) Interest accrued and due on debentures
The tool of analysis of financial statements which indicates the trend and direction of financial position and operating results is _______.
What is meant by analysis of financial statements?
Which of the following is not the method of financial statement analysis?