Maharashtra Board Class 12th Solutions for Accountancy Chapter 9 Analysis of Financial Statements – Download PDF with Solutions
FAQs on Maharashtra Board Class 12 Solutions for Accountancy Chapter 9 Analysis of Financial Statements - PDF
1. What are financial statements?
At the end of the financial year, all the information is recorded in the Account Books, and financial statements are created to summarize the information.
2. What are the main tools for the analysis of financial statements?
The main techniques for analysis of financial statements are Comparative Financial statements, Common Size Statement, and Cash Flow Analysis.
3. Mention two important types of financial statements.
The two important financial statements include the Balance Sheet or Position Statement and the Profit and Loss account or Income Statement.
4. Why is the analysis of financial statements important?
With the analysis of financial statements, it becomes easier to plan and estimate the earnings of the business.
5. What is the formula for Gross Profit Ratio?
Gross Profit Ratio = Gross Profit/Net Sales x 100