Financial Statement Analysis
30 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which term refers to interpreting data in financial analysis?

  • Calculating
  • Comparing
  • Interpreting (correct)
  • Collecting
  • What does analysis of financial statements simply mean?

  • Comparing
  • Collecting (correct)
  • Calculating
  • Interpreting
  • What is another name for Comparative Analysis in financial statement analysis?

  • Trend Analysis
  • Ratio Analysis (correct)
  • Sequential Analysis
  • Horizontal Analysis
  • Common Size Analysis is also known as what type of analysis?

    <p>Vertical Analysis</p> Signup and view all the answers

    What does the comparative statement allow analysts to identify?

    <p>Direction of changes</p> Signup and view all the answers

    What is the main objective of financial analysis?

    <p>To establish relationships between items in financial statements</p> Signup and view all the answers

    In preparing comparative statements, what is done in Step 1?

    <p>List out absolute figures for two points in time</p> Signup and view all the answers

    Who can undertake financial analysis according to the text?

    <p>Both management of the firm and parties outside the firm</p> Signup and view all the answers

    Why might financial analysis techniques vary among different analysts?

    <p>Because of differences in the interests of the analysts</p> Signup and view all the answers

    What is a focus area of financial analysis for a finance manager?

    <p>Corporate efficiency</p> Signup and view all the answers

    How does financial analysis benefit an investor?

    <p>By giving insights into a firm's financial strengths and weaknesses</p> Signup and view all the answers

    Why must a finance manager be well-equipped with different tools of analysis?

    <p>To make rational decisions for the firm</p> Signup and view all the answers

    What is included in Shareholders' Funds?

    <p>Share capital and reserve and surplus</p> Signup and view all the answers

    Which category of assets includes Inventories and Cash and Cash Equivalents?

    <p>Current assets</p> Signup and view all the answers

    What is considered a Non-current Liability in the context of the given information?

    <p>Long-term borrowings</p> Signup and view all the answers

    What shows a 33.33% decrease from March 31, 2014 to March 31, 2015?

    <p>Fixed assets</p> Signup and view all the answers

    Which item decreased by 25% from March 31, 2014 to March 31, 2015?

    <p>Trade payables</p> Signup and view all the answers

    In the context of the provided information, what category does Cash and Cash Equivalents fall under?

    <p>Current assets</p> Signup and view all the answers

    What is the percentage of Cost of Goods Sold to Net Sales in 2013-14?

    <p>48%</p> Signup and view all the answers

    Which year had a higher Gross Profit percentage?

    <p>2013-14</p> Signup and view all the answers

    What percentage of Non-Operating expenses to Net Sales was in 2013-14?

    <p>0.60%</p> Signup and view all the answers

    Which expense had the highest percentage relative to Net Sales in 2014-15?

    <p>Operating expenses</p> Signup and view all the answers

    What is the Operating Income percentage in 2014-15?

    <p>47.20%</p> Signup and view all the answers

    Which year experienced a higher decrease in Wages compared to the previous year?

    <p>2014-15</p> Signup and view all the answers

    What is the total amount of trade receivables as per the balance sheet of Beta Ltd. on March 31, 2015?

    <p>Rs. 90,000</p> Signup and view all the answers

    In the Comparative Balance Sheet, what is the increase in total assets from 2014 to 2015?

    <p>Rs. 2,00,000</p> Signup and view all the answers

    What is the total equity share capital in Beta Ltd.'s balance sheet on March 31, 2014?

    <p>Rs. 3,00,000</p> Signup and view all the answers

    Based on the given information, what is the total amount of short-term borrowings in Beta Ltd.'s balance sheet on March 31, 2015?

    <p>Rs. 70,000</p> Signup and view all the answers

    What is the total amount of non-current investments in Beta Ltd.'s balance sheet on March 31, 2015?

    <p>Rs. 2,25,000</p> Signup and view all the answers

    From the Comparative Statement of Profit and Loss perspective, what does a decrease in short-term provisions imply?

    <p>Increased profitability</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Browser