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FINANCIAL STATEMENT ANALYSIS

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Under which major head will the following be shown:


(i) Share Capital; and (ii) Money Received Against Share Warrants?

a)

Shareholders Fund

b)

Reserves and Surplus

2.

Under which sub-head will the following be classified or shown:

(i) Long-term Borrowings; (ii) Deferred Tax Liabilities (Net); and (iii) Long-term Provision?

a)

Non Current Liabilities

b)

Other Non Current Liabilities

3.

Under which main head and sub-head of Equity and Liabilities part of the Balance Sheet are the following item classified or shown:

(i) Bonds; (ii) Debentures

a)

Long term borrowings & Long term provision

b)

Non current Liabilities & other Current Liabilities

c)

Non current liabilities and long term borrowings

4.

Classify the following items under major head and sub-head (if any) in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013: (i) Capital Work-in-Progress: (ii) Provision for Warranties

a)

i) Fixed Asset & ii) Non current Liabilities

b)

i) Fixed Asset & ii)Current Assets

5.

Under which heads the following items are classified or shown on the Assets part of the Balance Sheet of a company: (i) Loose Tools

a)

Non current assets and Trade Receivables

b)

Current Assets & Trade Receivables

c)

Current assets & Inventories

6.

Identify the major heads under which the following items will be shown in the Balance Sheet of a company as per Schedule III of Companies Act, 2013:

(i) Provision for Tax.(ii) Loan payable on demand.

a)

Non Current Liabilities

b)

Current Liabilities

7.

Classify the following item under major head and sub-head in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013: i) Income received in Advance

a)

Current Liabilities

b)

Short term provision

c)

Other current liabilities

d)

Short term borrowings

8.

Under which major head and sub-head of the Assets part of the Balance Sheet will the following be shown: Stores and Spares.

a)

Current Investments

b)

Current Assets

c)

Inventories

d)

Other Current Assets

9.

State any two items that are included in the following major head under which liabilities of a company are shown: (i) Short term Borrowings.

a)

Loans repayable on demand

b)

Unpaid dividends

10.

Current assets include only those assets which are expected to be realized within……

a)

(A) 3 months

b)

(B) 6 months

c)

(C) 1 year

d)

(D) 2 years

11.

A Company’s liquid assets are Rs.5, 00,000 and its current liabilities are Rs.3, 00,000. Thereafter, it paid Rs.1, 00,000 to its trade payables. Quick ratio will be:

a)

1.33:1

b)

2.5:1

c)

1.67:1

d)

2:1

12.

Assertion (A): Current ratio is computed to assess the short-term financial position of the enterprise. Reason (R): Current ratio explains the relation between long term assets and current liabilities of a business.

a)

(A) Both (A) and (R) are correct and (R) is the correct explanation of (A)

b)

(B) Both (A) and (R) are correct and (R) is not the correct explanation of (A)

c)

(C) (A) is correct, but (R) is incorrect

d)

(D) (A) is incorrect, but (R) is correct

13.

Revenue from Operations Rs.2, 00,000; Inventory Turnover ratio 5; Gross Profit 25%. Find out the value of Closing Inventory, if Closing Inventory is Rs.8, 000 more than the Opening Inventory.

a)

Rs.38, 000

b)

Rs.22, 000

c)

Rs.34, 000

d)

Rs.26, 000

14.

Opening Inventory Rs.1,00,000; Closing Inventory Rs.1,50,000; Purchases Rs.6,00,000; Carriage Rs.25,000; wages Rs.2,00,000. Inventory Turnover Ratio will be:

a)

6.6 Times

b)

7.4 Times

c)

7 Times

d)

6.2 Times

15.

The quick ratio is 1.8:1, the current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine the value of the stock.

a)

Rs 54,000

b)

Rs 60,000

c)

Rs 1, 62,000

d)

None of the above