Short Answer Questions

Question .1.    What is meant by Common Size Statements? Give any two uses of Common Size Statements.

Solution . 1     Common Size Statement Express all items of a financial statement as a percentages of some common base such as revenue from operations for profit and loss statement and total assets for balance sheet.

Short Answer Questions

Question 1.      State who may be interested in the analysis of financial statement and why?

Solution  1.      The interested in the analysis of the financial statement ananlysis may be studies from the point of view of varioud parties as follows:- 

Short Answer Questions

Question 1.        Shubh Limited has the following balance appearing in its Balance Sheet:

Short Answer Questions

Question 1.      Show the Share Capital in Company’s balance sheet with imaginary figures.

Solution  1

 Short Answer Questions

Question 1.      Why a retiring or deceased partner is entitled to a share of goodwill of the firm?