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)
Historical Analysis of financial Statement.

Question 2.
State any one objective of analysis of financial statements. (CBSE Compartment Delhi 2014)
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.
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?
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 ?
Solvency means ability to pay the debts.