🏫 Board📒 Accountancy

Analysis of Financial Statements

10 Board Accountancy previous year questions on Analysis of Financial Statements — options free on every question; 1 include the answer & explanation free, the rest unlock with PYQ Pass.

Q1 FREE PREVIEW

Under which Sub head we show the Security Premium in Balance Sheet?

a

Reserve and Surplus

b

Share Capital

c

Equity Share Capital

d

Shares and Liabilities

✓ Correct answer: a)

Reserve and Surplus

Explanation

In a company's Balance Sheet, Securities Premium (or Security Premium Reserve) is shown under the sub-head Reserves and Surplus, which is part of the main head Shareholders' Funds. It represents the amount received by a company in excess of the face value of its shares.

According to Section 52 of the Companies Act, 2013, this amount is treated as a capital reserve and is restricted to specific uses, such as issuing fully paid bonus shares or writing off preliminary expenses.

Therefore, Option A is correct.

Q2

Other income is ₹5,00,000 which is 25% of Revenue from operations. Employees benefit Expenses are 30% of the Revenue from operation. Tax rate is 40%. Net profit after tax will be:

a

₹ 10,25,000

b

₹ 11,40,000

c

₹ 10,75,000

d

₹ 10,35,000

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Q3

Balance Sheet of companies is prepared in :-

a

Horizontal form

b

Vertical form

c

Either (A) or (B)

d

None of these

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Q4

Vertical Analysis also known as :-

a

Fluctuation Analysis

b

Static Analysis

c

Horizontal Analysis

d

None of these

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Q5

Analysis of financial statement includes :-

a

Trading A/C

b

Profit & Loss Statement

c

Balance Sheet

d

All of the above

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Q6

Interpretation of Financial Statement includes :-

a

Criticism & Analysis

b

Comparison and trend study

c

Drawing Conclusion

d

All of the above

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Q7

Financial Analysis is useful for :-

a

Investors

b

Shareholders

c

Debenture holders

d

All of the above

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Q8

Common Size Statements are also known as :

a

Dynamic analysis

b

Horizontal analysis

c

Vertical analysis

d

External analysis

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Q9

Amount set aside to meet losses due to bad debt is called :-

a

Reserve

b

Provision

c

Liability

d

None of these

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Q10

Current Assets on the Assets side of Balance Sheet of a company
include :-

a

Sundry Debtors

b

Cash in hand

c

Stock

d

All of these

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