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Class 12 Finance Financial Analysis Notes and Important Questions

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Important Questions

1
LongOld Question · 2081

Following Balance Sheet of a company is given as:

Particulars

Assets (Rs.)

Liabilities (Rs.)

Share Capital

—

5,00,000

Bank Loan

—

2,00,000

Creditors

—

1,00,000

Retained Earnings

—

2,50,000

Fixed Assets

6,00,000

—

Current Assets

4,50,000

—

Total

10,50,000

10,50,000

Other Information:

i) Current assets include Rs. 80,000 for inventory and Rs. 20,000 for cash.
ii) Net Profit = Rs. 1,20,000
iii) Sales = Rs. 18,00,000

Required:

a) Liquid Ratio
b) Debt-Equity Ratio
c) Inventory Turnover Ratio
d) Fixed Assets Turnover Ratio
e) Return on Total Assets
f) Return on Equity
g) Net Profit Ratio

h) Find the amount of Gross Profit if gross profit margin is 40%.

2
Long8 marksOld Question · 2082

Following information of Balance Sheet given as:

Items

Assets

Liabilities

Cash

1,00,000

Debtors

2,00,000

Machinery

4,00,000

Stock

50,000

Capital

3,00,000

Debenture

1,00,000

Creditors

80,000

Overdraft

1,20,000

Retained Earnings

1,50,000

Total

7,50,000

7,50,000

Additional Information:

i) Net profit for the year: Rs. 1,00,000
ii) Sales: Rs. 15,00,000

Required:

a) Current Ratio
b) Liquid Ratio
c) Inventory Turnover Ratio
d) Debt-Equity Ratio
e) Total Assets Turnover Ratio
f) Return on Capital Employed
g) Return on Equity
h) Net Profit Ratio

3
Long8 marksOld Question · 2083
  1. Following Balance Sheet is given as:

Liabilities

Rs.

Assets

Rs.

Share capital

4,00,000

Building

3,00,000

Loan

1,00,000

Machinery

2,00,000

Creditors

50,000

Stock

1,00,000

Outstanding expense

30,000

Debtors

2,00,000

Overdraft

20,000

Cash

40,000

Retained Earnings

3,00,000

Bank

60,000

Total

9,00,000

Total

9,00,000

Additional Information:

i) Sales for the year: Rs. 6,00,000
ii) Net profit: Rs. 2,40,000
iii) Working days in the year: 360 days

Required:

a) Current Ratio
b) Quick Ratio
c) Debt-Equity Ratio
d) Net Profit Ratio
e) Return on Total Assets
f) Return on Total Capital
g) Debtors Turnover Ratio
h) Days Sales Outstanding (DSO)

4
Very Short1 markOld Question · 2080

Write the meaning of Inventory turnover ratio.

1
Very Short1Old Question · 2082

Write the meaning of fixed assets turnover ratio.

2
Very Short1 markOld Question · 2083

Mention any two limitations of financial ratio analysis.

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Exam

Past Question Analysis

Historical exam-pattern data from past NEB question papers — not a prediction of future questions.

7

Question Items

20

Total Marks

4

Papers Appeared In

YearQuestion ItemsMarks
208329
208229
208121
208011

This page covers Financial Analysis, chapter 3 of 10 in the Class 12 Finance syllabus set by the National Examination Board (NEB). 7 important questions for this chapter are available, each with a model answer.

For subjects like this one, examiners tend to reuse similar question patterns year to year — comparing this chapter's important questions against recent old NEB papers is one of the more efficient ways to revise.