Analysis of Financial Statements

INTERNAL ASSIGNMENT – 1

Q.1. Write answers for any two questions from below. (5 marks each – Word limit – 500)

1. What are the objectives of preparing profit and loss account?
2. Explain the provisions of Indian Companies Act,1956 regarding preparation and form of Balance Sheet.
3. Explain the meaning of funds flow statement in detail.

Q.2. Write short notes on all of the following topics (1 mark each – Word limit – 100)

1. Capital and revenue expenditure
2. Cash Equivalents
3. Balance Sheet
4. What is working capital
5. Cash Flow Statement

INTERNAL ASSIGNMENT – 2

Q.1. Write answers for any two questions from below. (5 marks each – Word limit – 500)

1. Explain the method of calculating ‘Cash flow from Operating Activities’ under direct method.
2. Explain briefly the interest of shareholders, lenders and taxation authorities in the analysis of financial statements of a Company.
3. Prepare the format of ‘Cash Flow Statement’ under direct method.

Q.2. Write short notes on all of the following topics (1 mark each – Word limit – 100)

1. Depreciation
2. What is meant by ‘funds’ and ‘flow’ with respect to funds flow statement
3. What is meant by Marshalling of assets and liabilities
4. State one limitation of Balance Sheet
5. What are deferred revenue expenditure