CBSE Class 12 - Accountancy - MCQs -COMPARATIVE & COMMON – SIZE STATEMENTS
CHAPTER: TOOLS FOR FINANCIAL STATEMENT ANALYSIS
Financial statements are reports prepared by a company’s management to present the financial performance and position at a point in time. A general-purpose set of financial statements usually includes a balance sheet, income statements, statement of owner’s equity, and statement of cash flows.The various tools used for analysis of financial statements are:
1. Comparative Statement: Financial Statements of two years are compared (Horizontal Analysis)
2. Common Size Statement: Figures of Financial Statements are converted in to percentage with respect to some common base
3. Ratio Analysis
4. Cash Flow Statement
COMPARATIVE & COMMON – SIZE STATEMENTS(MCQs)
(A) Comparative Statements
(B) Common Size Statements
(C) Accounting Ratios
(D) All of the above