Sponsor Area
State any one limitation of 'Analysis of Financial Statements'.
Analysis of Financial Statements suffers from certain limitations and they are:
a) It is only a study of interim report.
b) It ignores non-monetary factors.
Sponsor Area
From the following 'Statement of Profit & Loss' for the year ended 31st March, 2013, prepare a 'Comparative Statement of Profit & Loss' of Good Service Ltd.
|
Particulars |
Note No. |
2012-2013 |
2011-2012 |
|
Revenue from operations |
|
20,00,000 |
15,00,000 |
Rate of income tax was 50%.
State any one objective of Financial Statement Analysis.
The most important objective of Financial Statement Analysis is to diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the business. It provides better and easy understanding of the changes in the financial data over a period of time.
State the significance of Analysis of Financial Statements to the Lenders.
Analysis of financial statements helps the lenders in assessing the long-term solvency of the business. It also helps them in evaluating the relative financial status of a firm in comparison to other competitive firms.
Sponsor Area
Mock Test Series
