Practice Vertical Analysis - 3.4.1 | 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

Define Vertical Analysis in your own words.

💡 Hint: Think about how we use percentages in everyday comparisons.

Question 2

Easy

What is a Common Size Income Statement?

💡 Hint: Consider what percentage means in financial terms.

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 involve?

  • Analyzing financial statements over multiple years
  • Expressing items as a percentage of a base figure
  • Comparing companies of different sizes
  • Studying financial ratios

💡 Hint: Think about the definition of Vertical Analysis.

Question 2

True or false: A Common Size Statement shows individual items as a percentage of total sales.

  • True
  • False

💡 Hint: Consider what 'common size' means in terms of financial statements.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has the following financial data: Total Sales ₹600,000, Rent Expense ₹120,000, Utilities ₹30,000. Create a Common Size Income Statement and calculate each expense's percentage of sales. Discuss the insights gained from these ratios.

💡 Hint: Use (Expense/Sales) * 100 for each calculation.

Question 2

Given a balance sheet with Total Assets of ₹1,500,000, Current Assets of ₹600,000, and Fixed Assets of ₹900,000, calculate both categories as percentages of total assets. Evaluate how this structure might impact financial ratios.

💡 Hint: Remember to use (Item/Total Assets) * 100 for calculations.

Challenge and get performance evaluation