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Questions and Answers
What is the primary aim of effective communication?
What is the primary aim of effective communication?
Which of the following best describes active listening?
Which of the following best describes active listening?
What is a common barrier to effective communication?
What is a common barrier to effective communication?
In a communication context, nonverbal cues include which of the following?
In a communication context, nonverbal cues include which of the following?
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Which technique is effective for improving communication skills?
Which technique is effective for improving communication skills?
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Study Notes
Financial Statement Analysis
- This textbook covers analysis of financial statements as per Schedule III of the Companies Act, 2013.
- The 2021 edition is for CBSE Class XII students.
Tools for Financial Statement Analysis
- Comparative Statements and Common-Size Statements.
- Comparative Statements compare components of financial statements (e.g., Balance Sheet, Income Statement) for two or more periods. This enables comparison of changes over time.
- Common-Size Statements express individual components as percentages of a common base (e.g., total assets for Balance Sheet, total revenue for income statement). This facilitates comparison of trends and changes in proportions of financial statements elements.
- Ratio Analysis is a useful tool. Ratios relate interdependent items in the statement. A ratio represents an arithmetical relationship between two or more interdependent accounting variables.
- Cash Flow Statement shows the flow of Cash and Cash Equivalents during a period. It's categorized by operating, investing and financing activities. Funds Flow Statement is a related tool not discussed in the syllabus.
Objectives of Comparative Financial Statements
- Presents data in a clear and comparable manner.
- Shows trend and changes in financial position and performance over time.
- Helps assess strengths and weaknesses of the company's financial position and performance.
- Allows for comparison with other firms and industry benchmarks.
- Enables forecasting and planning.
Limitations of Comparative Statements
- Analysis is based on historical data.
- Subjective judgment and assumptions can affect the analysis.
- Qualitative factors impacting the business are not explicitly analysed.
- Changing price levels are not considered.
- Accounting policies of comparing entities may differ, thus making comparisons meaningless.
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Description
Test your understanding of effective communication principles in this quiz. Explore topics such as active listening, barriers to communication, and nonverbal cues. Enhance your skills and learn techniques to improve your communication.
