CBSE Class 12 Accountancy HOTs Analysis of Financial Statement Set C
1. Which of the following analysis helps a company to stop selling goods on account to its customers.
(a) Debit analysis
(b) Credit analysis
(c) Capacity analysis
(d) Debt analysis
Ans.Credit Analysis
2. Which analysis helps a company to stop raising debt funds?
(a) Debt analysis
(b) Debit analysis
(c) Credit analysis
(d) All of the above
Ans.Debt analysis
3. Make pairs from the following terms which is related to the Balance sheet. Current liability, share premium, debentures, reserves and surplus, secured loans, sundry creditors.
Ans.Current liability - Sundry creditors
Share premium - Reserves and surplus
Debentures - Secured loan
4. Financial statements doesnt record certain aspects which are more worthwhile than monetary aspects.
(i) Why such aspects cannot be recorded?
(ii) Giving examples of such aspects.
Ans.The money measurement assumption (monetary unit assumption) underlines the fact that in accounting every worth recording event, happening or transaction is recorded in terms of money. General health condition of the chairman of the company, working conditions in which a worker has to work etc. cannot be expressed in money terms and therefore are not recorded in the books.
