Financial Statements Analysis
Telangana Open School (TOSS) · Class 12 · Accountancy
Most important questions from Financial Statements Analysis for Telangana Open School (TOSS) Class 12 Accountancy board exam 2026. MCQs, short answer, and long answer questions with marks.
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Sample Questions
In a comparative balance sheet, which column shows the change in amounts?
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Absolute Change column
The Absolute Change column in a comparative balance sheet shows the difference (increase or decrease) between the current year and previous year figures.
True or False: Financial analysis helps in measuring the profitability of a business.
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True
One of the main advantages of financial analysis is measuring the profitability of a business by assessing whether adequate profits are being earned on capital invested.
Which of the following is a limitation of financial analysis?
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It ignores qualitative aspects
Financial analysis only considers monetary transactions and ignores qualitative factors like management efficiency, employee relations, etc., which are important for business success.
What does a comparative income statement compare?
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Sales and expenses over different years
A comparative income statement compares items like sales, expenses, and profits across different accounting periods to analyze trends and performance.
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