Financial Statement Analysis Important Questions 2025 [Dibrugarh University BCom 6th Sem. CBCS]

Are you a BCom 6th Semester Student at Dibrugarh University preparing for your Financial Statement Analysis Exam in 2025? This blog post is all about Financial Statement Analysis ! We’ve put together a simple, easy list of Financial Statement Analysis important questions for Dibrugarh University BCom 6th Sem. These Financial Statement Analysis important questions 2025 in PDF cover Previous year question papers (2014–2024) and the full Solution of Financial Statement Analysis CBCS syllabus. Get ready for Auditing success with  Dibrugarh University BCom (Honours) 6th Semester Financial Statement Analysis Important Questions 2025!

Financial Statement Analysis Important Questions Dibrugarh University BCom (Honours) 6th Sem 

Unit 1: Financial Statement Analysis

 

Write True or False

1. Financial statements disclose only monetary facts. (Dibrugarh University 2017, 2023)

2. Financial statements are the end product of the financial accounting process. (Dibrugarh University 2018)

3. Financial statements also disclose such facts which are not recorded in accounting books. (Dibrugarh University 2018)

4. Comparative statement analysis is an example of horizontal analysis. (Dibrugarh University 2024)

5. Fund flow and cash flow statements are part of financial statements. (Dibrugarh University 2020)

6. Financial statements accomplish only internal reporting. (Dibrugarh University 2018)

7. Cash flow statement is a part of financial statements. (Dibrugarh University 2019)

8. Financial statement in ordinary sense means a statement relating to financial matter. (Dibrugarh University 2022)

9. The term ‘Financial Analysis’ includes both ‘analysis’ and ‘interpretation’. (Dibrugarh University 2020)

10. Net worth includes working capital. (Dibrugarh University 2020)

Fill in the Blanks

1. Financial statements are ________ (recorded facts / estimated facts / anticipated facts). (Dibrugarh University 2014, 2019)

2. Comparative statement analysis is also known as ________ (vertical analysis / static analysis / horizontal analysis). (Dibrugarh University 2016)

3. Common-size statement analysis is known as ________ (vertical analysis / horizontal analysis). (Dibrugarh University 2017, 2023)

4. Static analysis takes the data for ________ (one year / two years / three years). (Dibrugarh University 2019)

5. The basic objective of financial statements is to ________ (provide information / meet legal requirement / show performance of management). (Dibrugarh University 2017, 2018)

Write Short Notes

1. Comparative Statements (Dibrugarh University 2015, 2018, 2023)

2. Common Size Statement (Dibrugarh University 2016, 2018, 2019, 2024)

3. Value Added Statement (Dibrugarh University 2018, 2020, 2023)

4. Economic Value Added Statement (Dibrugarh University 2017, 2020)

5. Trend Analysis (Dibrugarh University 2016, 2017, 2018, 2024)

6. Objectives of Financial Statement Analysis (Dibrugarh University 2018, 2022)

7. Statement of Changes in Financial Position (Dibrugarh University 2019)

8. Window Dressing 

Answer the Following Questions (14 Marks)

1. What are financial statements? What are their various types? Explain them briefly. (Dibrugarh University 2015, 2018, 2022, 2023)

2. What is a financial statement? What are its nature and objectives? What are the various limitations of financial statements? (Dibrugarh University 2014, 2015, 2017, 2023)

3. What is financial statement analysis? What are its objectives? (Dibrugarh University 2016, 2019, 2022)

4. What is the significance of financial statement analysis? What are the various limitations of analysis of financial statements? (Dibrugarh University 2016, 2019, 2022, 2024)

5. What are the various tools and techniques used for financial analysis? Explain them briefly with their respective merits and demerits. (Dibrugarh University 2014, 2016, 2017, 2018, 2019SN, 2023, 2024)

6. “Financial reporting should be a part of the annual report of the companies and it is the best way to provide information to its shareholders.” Considering this statement, write a brief note on financial statements and their types. (Dibrugarh University 2022, 2024)

7. “Financial statement reflects a combination of recorded facts, accounting conventions, and personal judgment.” Discuss. (Dibrugarh University 2020)

8. What constitutes financial statements? Explain the limitations of financial statements. (Dibrugarh University 2023)

9. “Analysis without interpretation is meaningless and interpretation without analysis is impossible.” Discuss. (Dibrugarh University 2020)

10. Practical Problem: Preparation of Comparative Financial Statements and Common Size Statements (Dibrugarh University 2019)

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 Unit 2: Ratio Analysis

Write True or False

1. Debt-equity ratio is a solvency ratio. (Dibrugarh University 2022, 2024)

2. Current ratio is calculated to compare current assets and fixed assets. (Dibrugarh University 2017, 2023)

3. Current ratio is also known as acid-test ratio. (Dibrugarh University 2018)

4. A decrease in stock turnover ratio indicates that business is becoming more efficient. (Dibrugarh University 2017)

5. High stock velocity indicates efficient management of inventory. (Dibrugarh University 2020)

6. Return on capital employed measures the profit-earning capacity of an enterprise. (Dibrugarh University 2020)

7. Liquidity of companies improves with increase in cash purchases. (Dibrugarh University 2020)

8. Earning yield ratio is the relationship between earning per share and the market value per share. (Dibrugarh University 2019)

 Fill in the Blanks

1. Ratio of net profit before interest and taxes to sales is ________ ratio (net profit / profit / operative profit). (Dibrugarh University 2016, 2022)

2. Long-term solvency of the business is reflected by ________ (acid-test ratio / debt-equity ratio / stock turnover ratio). (Dibrugarh University 2017)

3. Quick assets are current assets less ________ (stock, prepaid / debtor, outstanding / bank overdraft, prepaid). (Dibrugarh University 2018)

4. Rule of thumb for acid-test ratio is ________ (1:1 / 2:1 / 2:2). (Dibrugarh University 2020)

5. Inventory is part of ________ (current liabilities / fixed assets / liquid assets). (Dibrugarh University 2020)

6. Net capital employed is ________ [all assets - current liabilities / all assets (excluding fictitious assets) - current liabilities / current assets - current liabilities]. (Dibrugarh University 2019)

7. ________ and ________ ratios are the main ratios to measure the liquidity position. (Dibrugarh University 2024)

Write Short Notes

1. Solvency Ratio (Dibrugarh University 2015, 2017, 2022, 2024)

2. Profitability Ratio (Dibrugarh University 2017, 2018)

3. Activity Ratio (Dibrugarh University 2015, 2016, 2017, 2019)

4. Liquid Ratio (Dibrugarh University 2018)

5. Balance Sheet Ratios (Dibrugarh University 2019, 2023, 2024)

6. Debtors Turnover Ratio (Dibrugarh University 2016)

7. Stock Turnover Ratio (Dibrugarh University 2016)

8. Limitation of Ratio Analysis (Dibrugarh University 2018)

9. Acid Test Ratio (Dibrugarh University 2016)

10. Composite Ratio (Dibrugarh University 2024)

Answer the Following Questions (14 Marks)

1. What is ratio analysis? What are its characteristics? Mention its advantages and disadvantages. (Dibrugarh University 2014, 2017, 2018, 2019, 2022)

2. What are the various classes of ratios? (Profitability Ratio, Solvency Ratio, Activity Ratio, Profit and Loss Account Ratio, Balance Sheet and Composite Ratios) (Dibrugarh University 2015, 2016)

3. “Ratio analysis is considered better than mere comparison of figures in carrying out overall appraisal of business.” Explain how ratio analysis is a better tool for appraisal. (Dibrugarh University 2017)

4. “As a technique of financial analysis, ratios must be used with great precautions.” Critically examine the importance of ratios and their limitations. (Dibrugarh University 2018)

5. “Return on investment is considered to be the master ratio which reflects the overall performance of the company.” Elucidate and show by examples how various managerial decisions affect Return on Investment (ROI). (Dibrugarh University 2020)

6. Explain the purpose of calculating the following ratios: (a) Current Ratio, (b) Liquid Ratio, (c) Gross Profit Ratio, (d) Net Profit Ratio, (e) Operating Profit Ratio, (f) Debtors Turnover Ratio and Debtors Collection Period, (g) Creditors Turnover Ratio and Average Payment Period, (h) Stock Turnover Ratio, (i) Debt-Equity Ratio, (j) Proprietary Ratio, (k) Return on Investment Ratio, (l) Return on Shareholder’s Fund, (m) Earnings per Share (Extra from Text, Every Year)

7. Practical Problem: Preparation of P/L account and balance sheet from given ratios (Dibrugarh University 2014, 2017, 2018, 2022, 2023, 2024)

8. Practical Problem: Calculation of various types of ratios from given financial information (Dibrugarh University 2015, 2019, 2022)

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 Unit 3: Financial Reporting and CSR

Write True or False

1. Corporate social responsibility reporting is not mandatory for any business in India. (Dibrugarh University 2017, 2018, 2022, 2024)

2. The Corporate Governance rules were notified on March 25, 2014, under Companies Act, 2013. (Dibrugarh University 2020, 2023)

3. Clause 49 of the Listing Agreement consists of mandatory provisions only. (Dibrugarh University 2019)

4. CSR policy does not include the activities relating to promotion of gender equality and empowering women. (Dibrugarh University 2019)

5. Financial reporting is a mandatory requirement in the annual report of a company. (Dibrugarh University 2020)

6. Corporate financial reporting is an effective communication of accounting information between the management and the user groups of the financial statements. (Dibrugarh University 2018)

Fill in the Blanks

1. Reporting of corporate governance reflects ________ (socio-economic status / company management / economic status). (Dibrugarh University 2017, 2019, 2023)

2. Compliance of Corporate Governance was made mandatory by SEBI as listing requirement vide ________ (Clause 49 / Clause 32). (Dibrugarh University 2017, 2018)

3. The GRI first released its sustainability reporting guidelines in ________ (1998 / 1999 / 2005). (Dibrugarh University 2020)

4. Profit or Loss of Life Insurance business is determined by preparing ________ (Revenue Account / Valuation Balance Sheet). (Dibrugarh University 2017)

5. Financial statement analysis helps to measure ________ (operating efficiency / management efficiency / employees efficiency). (Dibrugarh University 2015, 2018)

6. Profit & Loss A/c is also known as ________. (Dibrugarh University 2023)

Write Short Notes

1. Corporate Governance Reporting (Dibrugarh University 2015, 2017, 2022, 2023)

2. Corporate Social Responsibility Reporting (Dibrugarh University 2017, 2019, 2020)

3. Sustainability Reporting (Dibrugarh University 2016, 2019)

4. Harmonization of Corporate Reporting (Dibrugarh University 2020)

5. Global Reporting Initiative (GRI) (Dibrugarh University 2020)

6. Corporate Financial Reporting (Dibrugarh University 2018)

7. Objectives of Financial Statement Analysis (Dibrugarh University 2018)

Answer the Following Questions (14 Marks)

1. What do you mean by the term financial reporting? What are its objectives? Explain its importance and limitations. (Dibrugarh University 2016, 2019, 2023)

2. What do you mean by financial reporting? State the various steps adopted by business to enhance transparency in the financial reporting process. (Dibrugarh University 2017)

3. What is corporate social responsibility reporting? Explain the present legal provisions of corporate social responsibility and its reporting practices in India. (Dibrugarh University 2017, 2023, 2024)

4. Write a note on corporate social reporting. What are the essentials of a perfect corporate social responsibility report? (Dibrugarh University 2016)

5. Discuss the current status of Corporate Governance Reporting in India. How does Corporate Governance Reporting differ from Corporate Financial Reporting? (Dibrugarh University 2018)

6. Give a brief note on mandatory and voluntary disclosures on Corporate Social Responsibility Reporting. (Dibrugarh University 2022, 2024)

7. “Corporate Social Responsibility Reporting is often called the triple bottom line approach – sustainability in environment, social community, and business.” Discuss. (Dibrugarh University 2020)

8. “Financial reporting is intended to supply information useful to various groups in making decisions.” Explain. (Dibrugarh University 2024)

9. Mention some essential or qualitative characteristics of financial reporting. 

10. Write a brief note on recent developments in the field of corporate social responsibility. 

11. What are the objectives of corporate governance disclosure practices? Describe the guidelines on corporate governance reporting as per Clause 49 of the listing agreement. 

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 Unit 4: Financial Reporting by Banks, Insurance Companies, and NBFCs

Write True or False

1. IFRS-4 is associated with insurance contracts. (Dibrugarh University 2018, 2023, 2024)

2. According to IFRS, banking companies are to adopt historical value accounting. (Dibrugarh University 2020)

3. The IRDA was incorporated as a statutory body in April 1999. (Dibrugarh University 2016)

4. The IRDA was incorporated as a statutory body in April 2000. (Dibrugarh University 2018)

5. CRR stands for Cash Reserve Ratio. (Dibrugarh University 2019, 2022, 2023)

6. IFRS-10 is associated with consolidation and joint ventures. (Dibrugarh University 2022)

7. Section 24 of Banking Regulation Act, 1949 specifies the requirement of maintenance of cash reserve ratio. (Dibrugarh University 2019)

8. OCED stands for Organization for Economic Cooperation and Development. (Dibrugarh University 2020)

 Fill in the Blanks

1. CRR stands for ________. (Dibrugarh University 2022, 2023)

2. IRDA was incorporated in the year ________. (Dibrugarh University 2024)

3. IFRS-10 is associated with ________ (financial instruments / consolidated financial statement / fair value management). (Dibrugarh University 2020)

4. Section ________ deals with the definition of banking business [6(i) / 5(i)(b) / 7]. (Dibrugarh University 2020)

5. As per the IRDA regulations, 2002, all the companies shall comply with the requirements of Schedule A while preparing their financial statements ________ (general insurance / life insurance / general and life insurance). (Dibrugarh University 2020)

6. A Banking Company incorporated in India shall have to transfer a sum equal to ________ (20% / 30%) of profit to a Statutory Reserve. (Dibrugarh University 2017)

7. According to IFRS, banking companies are to adopt ________ (fair value accounting / historical value accounting). (Dibrugarh University 2015, 2018)

Write Short Notes

1. RBI Guidelines Regarding Financial Reporting of Banks (Dibrugarh University 2015, 2018)

2. IRDA (Dibrugarh University 2018, 2020)

3. Non-Banking Financial Company (NBFC) (Dibrugarh University 2019, 2022, 2023)

4. Statutory Liquidity Ratio (SLR) (Dibrugarh University 2019, 2020)

5. Demand and Time Liabilities (DTL) (Dibrugarh University 2019, 2020)

6. Provisions of IFRS-4: Insurance Contract (Dibrugarh University 2020)

7. Valuation of Investment of NBFCs (Dibrugarh University 2017)

8. Principle of Indemnity in Insurance (Dibrugarh University 2024)

Answer the Following Questions (14 Marks)

1. Give a brief note on IRDA’s guidelines on accounting and auditing of insurance companies. (Dibrugarh University 2014, 2016, 2018, 2023)

2. Give a brief note on suggestions made by the RBI’s advisory group on accounting and auditing of banks. (Dibrugarh University 2015, 2017, 2019)

3. Discuss the new standards of corporate governance under the Companies Act, 2013. (Dibrugarh University 2022)

4. Give a brief note on suggestions made by the RBI’s advisory group on accounting and auditing of NBFCs and FIs. (Dibrugarh University 2015, 2016, 2017, 2019, 2022, 2023)

5. Discuss the impact of IFRS on Indian banking companies. (Dibrugarh University 2020, 2024)

6. What is a non-banking financial company? Discuss the RBI guidelines on the regulatory framework of NBFCs. (Dibrugarh University 2019, 2022, 2023, 2024)

7. Discuss the important provisions need to be taken into consideration for financial reporting of insurance companies. (Dibrugarh University 2020)

8. Discuss the provisions of the Banking Regulation Act, 1949 relating to the financial statements of banking companies. (Dibrugarh University 2019)

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Complete Solution

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