30 Questions
Which term refers to interpreting data in financial analysis?
Interpreting
What does analysis of financial statements simply mean?
Collecting
What is another name for Comparative Analysis in financial statement analysis?
Ratio Analysis
Common Size Analysis is also known as what type of analysis?
Vertical Analysis
What does the comparative statement allow analysts to identify?
Direction of changes
What is the main objective of financial analysis?
To establish relationships between items in financial statements
In preparing comparative statements, what is done in Step 1?
List out absolute figures for two points in time
Who can undertake financial analysis according to the text?
Both management of the firm and parties outside the firm
Why might financial analysis techniques vary among different analysts?
Because of differences in the interests of the analysts
What is a focus area of financial analysis for a finance manager?
Corporate efficiency
How does financial analysis benefit an investor?
By giving insights into a firm's financial strengths and weaknesses
Why must a finance manager be well-equipped with different tools of analysis?
To make rational decisions for the firm
What is included in Shareholders' Funds?
Share capital and reserve and surplus
Which category of assets includes Inventories and Cash and Cash Equivalents?
Current assets
What is considered a Non-current Liability in the context of the given information?
Long-term borrowings
What shows a 33.33% decrease from March 31, 2014 to March 31, 2015?
Fixed assets
Which item decreased by 25% from March 31, 2014 to March 31, 2015?
Trade payables
In the context of the provided information, what category does Cash and Cash Equivalents fall under?
Current assets
What is the percentage of Cost of Goods Sold to Net Sales in 2013-14?
48%
Which year had a higher Gross Profit percentage?
2013-14
What percentage of Non-Operating expenses to Net Sales was in 2013-14?
0.60%
Which expense had the highest percentage relative to Net Sales in 2014-15?
Operating expenses
What is the Operating Income percentage in 2014-15?
47.20%
Which year experienced a higher decrease in Wages compared to the previous year?
2014-15
What is the total amount of trade receivables as per the balance sheet of Beta Ltd. on March 31, 2015?
Rs. 90,000
In the Comparative Balance Sheet, what is the increase in total assets from 2014 to 2015?
Rs. 2,00,000
What is the total equity share capital in Beta Ltd.'s balance sheet on March 31, 2014?
Rs. 3,00,000
Based on the given information, what is the total amount of short-term borrowings in Beta Ltd.'s balance sheet on March 31, 2015?
Rs. 70,000
What is the total amount of non-current investments in Beta Ltd.'s balance sheet on March 31, 2015?
Rs. 2,25,000
From the Comparative Statement of Profit and Loss perspective, what does a decrease in short-term provisions imply?
Increased profitability
Learn about the process of regrouping and analyzing information provided by financial statements to assess the strengths and weaknesses of a business enterprise for decision-making. The significance of financial analysis in comparing with other firms and tracking performance over time is also covered.
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