Here we are providing 1 Mark Questions for Accountancy Class 12 Chapter 9 Analysis of Financial Statements are the best resource for students which helps in class 12 board exams.

One Mark Questions for Class 12 Accountancy Chapter 9 Analysis of Financial Statements

Question 1.
State any one limitation of Financial Statement Analysis. (CBSE Compartment Delhi 2014, 2015)
Answer:
Historical Analysis of financial Statement.

Question 2.
State any one objective of analysis of financial statements. (CBSE Compartment Delhi 2014)
Answer:
To measure earning capacity of business.

Question 3.
State the type of Financial Statement Analysis in which figures of the same items of various years are compared.
Answer:
Horizontal analysis.

Question 4.
Which type of financial statement analysis helps a company to establish the relationship between different items financial statement of a same year?
Answer:
Vertical analysis.

Question 5.
“One of the objectives of Financial Statement Analysis is to assess solvency of business”. What does the term ‘solvency’ mean here ?
Answer:
Solvency means ability to pay the debts.