Comparative Financial Statements Archives - Commerceatease - Website for 11th & 12th Commerce https://commerceatease.com/category/accountancy/12th-class-accountancy/comparative-financial-statements/ Self-Learning of Commerce Made Easy Mon, 20 Jan 2025 05:24:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 Class 12 Accountancy MCQs Comparative Statements https://commerceatease.com/class-12-accountancy-mcqs-comparative-statements/ Sat, 12 Oct 2024 06:07:56 +0000 https://commerceatease.com/?p=10816 Class 12 Accountancy MCQs Comparative Statements

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]]> Class 12 Accountancy MCQs Comparative Statements

All these MCQs are based on Examination for the practice by the students to prepare for final exams.

  1. Comparative statements are also known as:

a) Dynamic analysis

b) Horizontal analysis

c) Vertical analysis

d) External analysis

2. Common size analysis is also known as ………. Analysis:

a) Dynamic analysis

b) Horizontal analysis

c) Vertical analysis

d) External analysis

3. Fixed assets of a company increased from ₹10,00,000 to ₹12, 00,000. The percentage change is

a) 20%

b) 33.3%

c) 25%

d) 40%

4. Which statement compares the assets and liabilities of a current year with that of previous year

a) Common size balance sheet

b) Comparative balance sheet

c) Common size income statement

d) Comparative statement of profit and loss

5. Which of the following depicts the operating result of more than one accounting period so that changes in absolute amount as well as in terms of percentage may be known.

a) Common size balance sheet

b) Comparative balance sheet

c) Common size income statement

d) Comparative statement of profit and loss

6. While preparing common- size income statement, each item of income statement is expressed as percentage of

a) Revenue from operations

b) Net Revenue from Operations

c) Total income

d) Profit before tax.

7. Assertion - Comparative balance sheet is horizontal analysis of balance sheet.

Reason - In Comparative balance sheet each item of Assets and liabilities is analysed vertically for two or more accounting periods

In the context of above two statements, which of the following is correct?

a) Assertion and Reason are correct but the Reason is not the correct explanation of Assertion

b) Both Assertion and reason are correct and the Reason is the correct explanation of Assertion.

c) Assertion is correct but Reason is not the correct.

d) Both Assertion and Reason are incorrect.

8. If Current year Revenue from Operations is ₹7,00,000 and percentage increase depicted by Comparative Statement of Profit and Loss is 40%, the amount of Revenue from Operations of the previous year was:

a) ₹6,00,000

b) ₹5,00,000

c) ₹8,00,000

d) ₹4,20,000

9. Which of the following statements are false?

A - Vertical Analysis is conducted for one accounting period.

B - Horizontal Analysis is useful in cross-sectional analysis.

C - Comparative Statements ignore qualitative factors.

a) Both A and B

b) Both A and C

c) Both B and C

d) All three A, B and C

10. Common Size Statement always needs statements of two consecutive years:

a) True

b) False

c) Sometimes

d) Never

 

More questions will be added from time to time.

 

 

Class 12 Accountancy MCQs Comparative Statements - Answers

  1. b) Horizontal analysis
  2. c) Vertical analysis
  3. a) 20%
  4. b) Comparative balance sheet
  5. d) Comparative statement of profit and loss
  6. b) Net Revenue from Operations
  7. c) Assertion is correct but Reason is not the correct.
  8. b) ₹5,00,000
  9. a) Both A and B
  10. b) False

Class 12 Accountancy MCQs Financial Statements Analysis

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Learning Games and Activities in Accountancy – Class 12

MCQs on Analysis of Financial Statements

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]]> Comparative Financial Statements https://commerceatease.com/comparative-financial-statements-meaning/ Thu, 11 Feb 2016 07:40:10 +0000 https://commerceatease.com//?p=741 Comparative financial statements show the absolute figures of two years indicate the increase or decrease in these figures from one year to another as well as changes in percentage form.

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]]> Comparative Financial Statements

Comparative Financial Statements are the statements showing financial data for two or more than two years, placed side by side for making comparison.

Comparative financial statements show the absolute figures of two years indicate the increase or decrease in these figures from one year to another as well as changes in percentage form.

Types of Comparative financial statements:

1. Comparative Balance Sheet

2. Comparative Income Statement

Comparative Financial Statements MCQs

 

 

 

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]]> Comparative Balance Sheet https://commerceatease.com/comparative-balance-sheet/ Thu, 11 Feb 2016 07:36:18 +0000 https://commerceatease.com//?p=737 Comparative Balance Sheet of a company shows the information contained in the Balance sheet for two years, the changes in absolute terms as well as in percentage form.

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]]> Comparative Balance Sheet

Comparative Balance Sheet of .... Ltd. for the year ending....31st, March 20....and 31st, March 20....

Particulars Note No. Previous Year  (`) Current Year (`) Absolute

increase/ decrease (`)

 Percentage increase/ decrease

I. Equity and Liabilities

1. Shareholders’ funds

(a) Share capital

(b) Reserves and Surplus

2. Non-Current Liabilities

(a) Long-term borrowings

(b) Long-term provisions

3. Current Liabilities

(a) Short-term borrowings

(b) Trade payables

(c) Other current liabilities

(d) Short-term provisions
Total

ASSETS

(1) Non-Current Assets

(a) Fixed Assets

(i) Tangible assets

(ii) Intangible assets

(b) Non-current investments

(c) Long-term loans and advances

(2) CURRENT ASSETS

(a) Current investments

(b) Inventories

( c) Trade receivables

(d) cash and cash equivalents

(e) Short term loans and advances

(f) Other current assets
Total

How to prepare Comparative Balance Sheet

The main steps are:

1. Enter the items of Assets and Liabilities in the first column.

2. Enter the figures of previous year's Balance Sheet in second column.

3. Enter the figures of Current year's Balance Sheet in third column.

4. Enter the absolute changes (current year figure- previous year figure) in fourth column.

5. Enter the percentage changes [(absolute change/ previous year figure) x 100] in fifth column.

 

Class 12 Accountancy MCQs Comparative Statements

Annual Reports of 20 Companies for Project Work

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]]> Comparative Income Statement https://commerceatease.com/comparative-income-statement/ Thu, 11 Feb 2016 07:34:50 +0000 https://commerceatease.com//?p=733 Comparative Income Statement shows increase or decrease in various items of Trading and Profit and Loss Account, in absolute terms and in percentage form, to know about the progress of the business.

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]]> Comparative Income Statement

It shows increase or decrease in various items of Trading and Profit and Loss Account, in absolute terms and in percentage form, to know about the progress of the business.

Format of Comparative Income Statement

Comparative Income Statement of ...Ltd. for the year ending...31st, March 20...and 31st, March 20...

Particulars Note No. Previous Year (₹) Current Year (₹) Absolute Change Percentage change
1.Revenue from Operations
2. Other Income
3.Total revenue (1+2)

4. Expenses

  Cost of Materials Consumed

  Purchases of Stock-in-Trade

  Changes in inventories of Finished     Goods

  Work-in-Progress and Stock-in-     Trade

  Employees Benefits Expenses

  Finance Costs

  Depreciation and Amortization  Expenses

  Other Expenses

  Total Expenses
  Profit before Tax (3 - 4)

If Provision for Tax is also given, the format may be extended to show its subtraction and then showing Profit after Tax.

How to prepare Comparative Income Statement

The main steps are:

1. Enter the items of income and expenditure in first column.

2.  Enter the previous year's figures in second column.

3.  Enter the current year's figures in third column.

4. Enter the absolute changes (current year figure- previous year figure) in fourth column.

5. Enter the percentage changes [(absolute change/ previous year figure) x 100] in fifth column.

 

Segment Project for Accountancy Class 12

Annual Reports of 20 Companies for Project Work

Class 12 Accountancy MCQs Comparative Statements

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]]> Common Size Statements https://commerceatease.com/common-size-statements/ Thu, 11 Feb 2016 07:32:49 +0000 https://commerceatease.com//?p=728 Common Size Statements are the statements in which individual figures are converted into percentages to some common base .Common Size Statements may be prepared for the Balance Sheets or the Income statements.

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]]> Common Size Statements

Meaning

Common Size Statements are the statements in which individual figures are converted into percentages to some common base. Size Statements may be prepared for the Balance Sheets or the Income statements. Total Assets or Total Liabilities is taken as a base for Common Size Balance Sheet and the figure of Net Sales is taken as the base for the Common Size Income Statement.

 

Types of Common Size Statements

1.     Common Size Balance Sheet

2.     Common Size Income Statement

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]]> Common Size Balance Sheet https://commerceatease.com/common-size-balance-sheet/ Thu, 11 Feb 2016 07:18:44 +0000 https://commerceatease.com//?p=723 A Common Size Balance Sheet is a statement in which total of assets or liabilities is assumed to be equal to 100 and all the figures are expressed as percentage of the total.

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]]> Common Size Balance Sheet

Meaning

It is a statement in which total of assets or liabilities is assumed to be equal to 100 and all the figures are expressed as percentage of the total. In other words, each asset is expressed as percentage to total assets and each liability is expressed as percentage to total liabilities.

Format 

Common Size Balance Sheet of .... Ltd.as on 31st March 20...and 31st March 20.......

Particulars Note No. Previous Year  (`) Current Year (`) Percentage  Previous Year Percentage Current Year

I. Equity and Liabilities

1. Shareholders’ funds

(a) Share capital

(b) Reserves and Surplus

2. Non-Current Liabilities

(a) Long-term borrowings

(b) Long-term provisions

3. Current Liabilities

(a) Short-term borrowings

(b) Trade payables

(c) Other current liabilities

(d) Short-term provisions
Total  100 100 

ASSETS

(1) Non-Current Assets

(a) Fixed Assets

(i) Tangible assets

(ii) Intangible assets

(b) Non-current investments

(c) Long-term loans and advances

(2) Current Assets

(a) Current investments

(b) Inventories

( c) Trade receivables

(d) cash and cash equivalents

(e) Short term loans and advances

(f) Other current assets
Total  100  100

How to prepare Common Size Balance Sheet

The main steps are:

1. Enter the items of Balance Sheet in first column.

2. Enter the absolute amounts of previous year figures in the second column.

3. Enter the absolute amounts of current year figures in third column.

4. Enter the common size percentages of previous year items in the fourth column.

5. Enter the common size percentages of current year items in the fifth column.

Formula for calculating the common size percentage:

[Item figure/Total assets (Total liabilities)] x100

The Comparative Balance Sheet shows increase and decrease in various assets, liabilities and capital in absolute terms as well as percentages.

 

Common Size Income Statement

Class 12 Accountancy MCQs Comparative Statements

Learning Games and Activities in Commerce

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]]> Common Size Income Statement https://commerceatease.com/common-size-income-statement/ Thu, 11 Feb 2016 07:11:59 +0000 https://commerceatease.com//?p=710 Common Size Income Statement is a statement in which the figure of net sales is assumed to be equal to 100 and all other figures of 'Profit and Loss Account are expressed as percentage of Net Sales.

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]]> Common Size Income Statement

It is a statement in which the figure of net sales is assumed to be equal to 100 and all other figures of 'Profit and Loss Account' are expressed as percentage of Net Sales so as to draw conclusion regarding the behavior of expenses over period of time.

Format 

Common Size Income Statement of ...Ltd. for the year ending...31st, March 20...and 31st, March 20...

Particulars Note No. Previous Year (₹) Current Year (₹) Percentage of Net Sales Previous Year Percentage of Net Sales Current Year
1.Revenue from Operations  100 100
2. Other Income
3.Total revenue (1+2)

4. Expenses

Cost of Materials Consumed

Purchases of Stock-in-Trade

Changes in inventories of Finished Goods

Work-in-Progress and Stock-in-Trade

Employees Benefits Expenses

Finance Costs

Depreciation and Amortization Expenses

Other Expenses

Total Expenses
Profit before Tax (3 - 4)

How to prepare Common Size Income Statement

The main steps in preparing the Common Size Income Statement are:

1. Enter the items of Income Statement in first column.

2. Enter the absolute amounts of previous year items in the second column.

3. Enter the absolute amount of current year items in third column.

4. Enter the common size percentages of previous year in fourth column.

5. Enter the common size percentages of current year in fifth column.

Formula for calculating the common size percentage:

[Item figure/Net Sales] x100

 

Annual Reports of 20 Companies for Project Work

Common Size Balance Sheet

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