Analysis of Financial Statements: Class 12 Accountancy (CBSE) important questions and practice
Analysis of Financial Statements is chapter 8 of 10 in CBSE Class 12 Accountancy. Below are the topics the paper draws from, the question types that come up again and again, and a free practice test on this chapter alone.
Topics in this chapter
- Meaning, objectives and limitations of financial statement analysis
- Tools: comparative statements, common size statements, ratio analysis, cash flow analysis
- Comparative Balance Sheet and Comparative Statement of Profit and Loss
- Common size Balance Sheet and Statement of Profit and Loss
- Interested parties and their needs
What examiners usually ask
- Prepare a Comparative Statement of Profit and Loss from the given figures of two years
- Prepare a Common Size Balance Sheet of the company as at 31 March
- State any three limitations of financial statement analysis
Exam tip
In comparative statements compute the percentage change on the base-year figure and show decreases in brackets; in common size statements total assets (or revenue from operations) is always the 100 percent base.
Analysis of Financial Statements on other boards and exams
Frequently asked questions
What are the important questions from Analysis of Financial Statements for CBSE Class 12?
The question types listed above repeat most often in CBSE Class 12 Accountancy papers for this chapter. Practise them with the chapter test and then attempt them inside a full previous-year paper under time.
Is Analysis of Financial Statements in the CBSE Class 12 Accountancy syllabus?
Yes. Analysis of Financial Statements is part of the current CBSE Class 12 Accountancy syllabus, as listed on this site from the prescribed textbook.
Can I practise Analysis of Financial Statements MCQs in Hindi?
Yes. The chapter test and explanations are available in Hindi and English, with an AI doubt solver for any question.