Answer in one sentence only.
1) Mention two objectives of comparative statement?
Ans: Objectives of comparative statements are :
(i) Compare financial data at two points of time and
(ii) Helps in deriving the meaning and conclusions regarding the changes in financial positions and operating results.
2) State three examples of cash inflows?
Ans: Examples of cash inflows are :
(1) Interest received,
(2) Dividend received,
(3) Sale of asset/investment,
(4) Rent received.
3) State three examples of cash outflows?
Ans: Examples of cash outflows are :
(1) Interest paid,
(2) Loss on sale of asset,
(3) Dividend paid,
(4) Repayment of short-term borrowings.
4) Give the formula of Gross Profit Ratio?
Ans: Gross profit ratio = (Gross profit / Net sales) x 100
Where Gross profit = Net sales – Cost of goods sold
Cost of goods sold = Opening stock + Purchase – Purchase return + Direct expense – Closing stock
Net sales = Sales – Sales return.
5) Give the formula of gross profit?
Ans: Gross profit = Net sales – Cost of goods sold.
Cost of goods sold = Opening stock + Purchase – Purchase return + Direct expense – Closing stock
Net sales = Sales – Sales return.
6) Give any three examples of current assets?
Ans: Cash or cash equivalent short-term lending and advances,
Expenses paid in advance,
Taxes paid in advance, etc.
are the examples of current assets.
7) Give the formula of current ratio?
Ans: Current ratio = Current assets / Current liabilities
8) Give the formula of quick assets?
Ans: Quick assets = Current assets – (Stock + Prepaid expense)
9) State the formula of Cost of goods sold?
Ans: Cost of goods sold = Opening stock + Purchase – Purchase return + Direct expense – Closing stock
10) State the formula of Average Stock?
Ans: Average stock = (Opening stock of goods + Closing stock of goods) / 2