Skip to main content
Super TutorResources
Chapter 11 of 14
QuestionsNotesFlashcardsSummaryFormulasQuizConceptsSyllabusPlan
Revision Notes

Analysis of Financial Statements

CBSE · Class 12 · Accountancy

Quick revision notes for Analysis of Financial Statements — CBSE Class 12 Accountancy. Key concepts, formulas, and definitions for last-minute revision.

111 questions64 flashcards5 concepts

Interactive on Super Tutor

Studying Analysis of Financial Statements? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for revision notes and more.

Try Super Tutor — Free

1,000+ Class 12 students started this chapter today

An infographic illustrating the core concept of financial statement analysis, showing financial statements as input, the analysis process, and the resulting insights and decisions. Highlight the two m
Super Tutor

Learn better with visuals Super Tutor has hundreds of illustrations like this across every chapter — all free to try.

Get started

Key Topics to Revise

1

Meaning and Significance of Financial Statement Analysis

  • Financial statement analysis is a judgemental process.
  • It studies relationships among financial facts and figures in the financial statements.
  • It helps in understanding profitability, operational efficiency, financial health, and future prospects.
2

Tools of Financial Analysis

  • Comparative Statements show financial data for two or more periods in comparative form.
  • Comparative Statements are also called horizontal analysis.
  • Common Size Statements express each item as a percentage of a common base.
3

Comparative Statements

  • Comparative statements are prepared for the balance sheet and statement of profit and loss.
  • They show figures for two periods side by side.
  • They also show absolute increase or decrease.
4

Common Size Statements

  • Common size statements express each item as a percentage of a common base.
  • They are also called component percentage statements.
  • They are also called vertical analysis.

Get complete notes with diagrams and examples

Full Notes

Key Concepts

It is the critical evaluationAnalysis means simplification of financial dataFinancial analysis is used by internalThese statements show the profitabilityThese statements express each item

Frequently Asked Questions

What are the important topics in Analysis of Financial Statements for CBSE Class 12 Accountancy?
Analysis of Financial Statements covers several key topics that are frequently asked in CBSE Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Analysis of Financial Statements — CBSE Class 12 Accountancy?
Understand the core concepts first, then work through the 111 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Analysis of Financial Statements

All 14 chapters — CBSE Class 12 Accountancy Revision Notes

For serious students

Get the full Analysis of Financial Statements chapter — for free.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan for CBSE Class 12 Accountancy.

Try Super Tutor Free
Try the full chapter — Free