Book- Keeping and Accountancy
STANDARD XII
Chapter 9. Analysis of Financial Statements
Page No. in book (376)
Answer in one sentence only.
1. Mention two
objectives of comparative statement.
Ans. To
determine the level of increase or decrease in financial position, the
percentage analysis to carried out in between them.
2. State three
examples of cash in flows.
Ans. The
three categories of cash flows are operating activities, investing activities,
and financing activities.
3. State three
examples of cash out flows.
Ans. The
three examples of cash out flows are Supplier payments, Bank loan payments,Bank
charges & interest.
4. Give the
formula of Gross Profit Ratio.
Ans. Gross
Profit Ratio = Gross profit/Net Sales x 100
5. Give the
formula of gross profit
Ans. Calculation
of Gross Profit:
Sales - Cost of
Goods Sold = Gross Profit.
6. State any
three examples of current assets.
Ans. Examples of Current Assets are
Accounts
receivable.
Inventory.
Prepaid
expenses.
7. Give the
formula of current ratio.
Ans. Current Ratio= Current Assets/Current
liabilities
8. Give the
formula of quick assets.
Ans. Quick
Assets = Current Assets – Inventories
9. State the
formula of cost of goods sold.
Ans. Cost
of goods sold = Opening Stock + Purchases-Closing Stock
10. State the
formula of Average Stock.
Ans. Average stock value = (opening + closing
stock) x 0.5