Practice Types of Financial Statement Analysis - 3.4 | Chapter 3: Financial Statement Analysis – ICSE Class 12 | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is vertical analysis?

💡 Hint: Think about how bases help us compare components.

Question 2

Easy

Define horizontal analysis.

💡 Hint: Focus on the timeline when considering financial data.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does vertical analysis allow analysts to evaluate?

  • Profitability
  • Proportional relation of line items
  • Sales figures

💡 Hint: Remember how components relate to the whole.

Question 2

True or False: Horizontal analysis utilizes only current financial statements.

  • True
  • False

💡 Hint: Think about how trends are evaluated over time.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Analyze the following financial data for the last three years: Year 1 Sales: ₹100,000, Year 2 Sales: ₹120,000, Year 3 Sales: ₹150,000. What trend do you see? How would you present this in a report?

💡 Hint: Identify the growth rates and express them clearly.

Question 2

A company reports a current ratio of 1.5 and a quick ratio of 1.2. What can you conclude about the company’s liquidity? How does this affect their short-term financial health?

💡 Hint: Consider how liquidity ratios reflect the company’s ability to pay short-term liabilities.

Challenge and get performance evaluation