Financial

statement analysis project class 12

Be the first to like this 0 likes•3,115,892 views•50 slidesI assure you that this project of mine will fetch you a very good score. Good Luck!! Go to the links below for the following... Solved Comprehensive Project Cbse Class 12 Accountancy Project Solved Accounting Ratios with Balance Sheet(vertical) and Statement of Profit and Loss - Cbse Class 12
Accountancy Project Solved Cash Flow Statements with Balance Sheet (vertical) and Notes to Accounts - Cbse Class 12 Accountancy Project Accounts or accountancy is an integral subject of the class 12 commerce, and analysis of financial statements class 12 forms an essential part of the accountancy syllabus of class 12. If you are thorough with
your notes and prepare well, it can be scoring as well. Here in this blog, we shall discuss in brief what this chapter is all about. If you are preparing for your class 12 board, then it would be great for you. Read on to know more about the analysis of financial statements chapter in class 12. Must Read: CBSE Accountancy Class 12 What is Financial
Statement Analysis? According to the chapter on analysis of financial statements class 12, a financial statement analysis numerically represents the relationship of one financial fact with the other to systematically measure the operational efficiency, solvency, profitability and the growth potential of the business. Listed below are certain types of
financial statement analysis: External analysis Internal analysis Horizontal analysis Vertical analysis Long-term analysis Short-term analysis What is the Process of Financial Statement Analysis? Analysis of financial statements class 12 talks about the process of financial statement analysis. They are mentioned below. The first step involves the
rearrangement of data Then, the comparison of data Followed by the analysis of data Conclusively, the interpretation of data Also Read: Nature and Significance of Management Class 12 Notes Importance of Financial Statement Analysis Analysis of financial statements class 12 also discusses the importance or objectives of Financial Statement
Analysis. They are mentioned below. Analyses the operational efficiency of businesses. Measures profitability. Measures short-term and long-term financial position. Indicates the trend of achievements. Assesses the growth potential of businesses.
Limitations We now look at the limitations of financial statement analysis according to the chapter analysis of financial statements class 12. They are mentioned below. Does not take into account certain essential qualitative aspects like quality of management, labour force and public relations. Financial statements are historical in character and
hence do not show price level changes. The results may be misleading due to window dressing. The personal ability and bias of the analyst affects the financial statements. Parties Interested in Financial Statement Analysis The chapter on analysis of financial statements class 12 mentions the parties interested in the process of financial statement
analysis. They are tabulated below along with their areas of interest. Read: Accounts Project Class 12 Analysis of Financial Statements class 12 also talks about the tools of financial statement analysis. The most widely used techniques of financial analysis are listed below: Comparative Financial Statement It is used to compare the items of the
income statement i.e. profit and loss account and position statement. Comparative income statement: It is a statement which shows in percentage term the total of income earned and expenses incurred during two or more accounting periods. Given below is the format of comparative income statement. Comparative balance sheet: It is a statement
that represents the assets and liabilities of the business for two or more accounting periods. It also represents the percentage change in the monetary value of the assets and liabilities. Given below is the format of comparative balance sheet: Common Size Statement In these statements, figures are converted into percentage to a common base. Each
percentage represents the relation of the individual item to the respective total. Common-size income statement : Sales figure is assumed to be 100 and all other figures are expressed as a percentage of sales. Demonstrated below is its format : Common-size balance sheet- The total of assets or liabilities is assumed to be 100 and figures are
expressed as a percentage of the total. Demonstrated below is the format of the same: Ratio Analysis This mathematical expression represents the relationships between various groups of items contained in the financial statements. Cash Flow Statement According to the chapter on the analysis of financial statements class 12, cash flow statement
represents the inflows and outflows of cash and cash equivalents of an enterprise by classifying cash flows into operating, investing and financing activities during a particular period and analysing the reasons for changes in the balance of cash between the two balance sheets dates. Explore: Business Studies Class 12 Case Studies So, this was all
about the Analysis of Financial Statements class 12. For more such informative content, stay connected to Leverage Edu! If you need help in choosing a career stream after class 12, then get in touch with our experts, who will guide you every step of the way! Sign up for a free session today! The information presented in financial and other reports,
including the financial statements, notes, and management’s commentary, help the financial analyst to assess a company’s performance and financial position. An analyst may be called on to perform a financial analysis for a variety of reasons, including the valuation of equity securities, the assessment of credit risk, the performance of due diligence
on an acquisition, and the evaluation of a subsidiary’s performance relative to other business units. Major considerations in both equity analysis and credit analysis are evaluating a company’s financial position, its ability to generate profits and cash flow, and its potential to generate future growth in profits and cash flow.This reading has presented an
overview of financial statement analysis. Among the major points covered are the following: The primary purpose of financial reports is to provide information and data about a company’s financial position and performance, including profitability and cash flows. The information presented in the reports —including the financial statements and notes
and management’s commentary or management’s discussion and analysis—allows the financial analyst to assess a company’s financial position and performance and trends in that performance. The primary financial statements are the statement of financial position (i.e., the balance sheet), the statement of comprehensive income (or two statements
consisting of an income statement and a statement of comprehensive income), the statement of changes in equity, and the statement of cash flows. The balance sheet discloses what resources a company controls (assets) and what it owes (liabilities) at a specific point in time. Owners’ equity represents the net assets of the company; it is the owners’
residual interest in, or residual claim on, the company’s assets after deducting its liabilities.
The relationship among the three parts of the balance sheet (assets, liabilities, and owners’ equity) may be shown in equation form as follows: Assets = Liabilities + Owners’ equity. The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how
much revenue and other income the company generated during a period and what expenses, including losses, it incurred in connection with generating that revenue and other income. The basic equation underlying the income statement is Revenue + Other income – Expenses = Net income. The statement of comprehensive income includes all items
that change owners’ equity except transactions with owners. Some of these items are included as part of net income, and some are reported as other comprehensive income (OCI). The statement of changes in equity provides information about increases or decreases in the various components of owners’ equity. Although the income statement and
balance sheet provide measures of a company’s success, cash and cash flow are also vital to a company’s long-term success. Disclosing the sources and uses of cash helps creditors, investors, and other statement users evaluate the company’s liquidity, solvency, and financial flexibility. The notes (also referred to as footnotes) that accompany the
financial statements are an integral part of those statements and provide information that is essential to understanding the statements. Analysts should evaluate note disclosures regarding the use of alternative accounting methods, estimates, and assumptions. In addition to the financial statements, a company provides other sources of information
that are useful to the financial analyst.
As part of his or her analysis, the financial analyst should read and assess this additional information, particularly that presented in the management commentary (also called management report[ing], operating and financial review, and management’s discussion and analysis [MD&A]). A publicly traded company must have an independent audit
performed on its annual financial statements. The auditor’s report expresses an opinion on the financial statements and provides some assurance about whether the financial statements fairly present a company’s financial position, performance, and cash flows. In addition, for US publicly traded companies, auditors must also express an opinion on
the company’s internal control systems. Information on the economy, industry, and peer companies is useful in putting the company’s financial performance and position in perspective and in assessing the company’s future. In most cases, information from sources apart from the company are crucial to an analyst’s effectiveness. The financial
statement analysis framework provides steps that can be followed in any financial statement analysis project. These steps are: articulate the purpose and context of the analysis; collect input data; process data; analyze/interpret the processed data; develop and communicate conclusions and recommendations; and follow up. Class 12 Accountancy
Project 2022-23 – As there is no proper information available on the internet, many students are still confused about the Accounts project 2023. They don’t know which project ideas to choose, how to do ratio and segment analysis, how to make a project report, and more. Therefore, in this article, we’ll help you by giving answers to all your question
related to the CBSE Class 12 Accountancy projects. Moreover, you’ll also get the Class 12 Accounts project pdf including the specific project of ratio and segment analysis, the format of a comprehensive project, and more. It is to be noted that according to the latest CBSE guidelines only one specific report needs to be submitted in the month of
March 2023 to the respective project guides in school. There is no provision of sending a comprehensive project file in pdf format or online. So let’s begin with knowing about the Class 12 Accountancy projects details as per the CBSE Guidelines. Must Check: Class 12th Commerce Coaching Units ChaptersWise Marks Part A Financial Statements of
Not-for-Profit Organizations 60 Part B Analysis of Financial Statements 20 Part C Practical Project test —-Written test —-Project Report —-VIVA 12 4 4 Total marks 20 Total Accounts Subject Marks 100 marks The accountancy Project work syllabus is the Part C of the class 12th accounts syllabus. As you can see, there are three parts of the Accounts
project.
The school will notify their students about the written test paper date, date to submit the project file, and VIVA. For all these 3 parts, students are allotted marks out of the total 20 marks. To know about the class 12 practical exams of all the subjects, students can check our detailed blog. Students need to appear for writing exams as scheduled by the
school of the students. Total marks: 12 marks Questions asked: 3-4 Topics covered in the syllabus: Ratio analysis, comparative analysis, common size analysis, cash flow analysis., Total hours allotted: 1 hour Book prescribes to cover project syllabus: Analysis of a financial statement by T.S Grewal, DK Goel, and NCERT book Total Marks: 04 Students
need to prepare the Accounts project file for their project guides in school. They can score 4 marks by submitting a neat, clean, impressive, and properly formatted project report. CBSE has reduced the syllabus for account projects for class 2023. Students now only need to make one specific project file. Earlier students used to make one
comprehensive project and 1 specific project. Where a comprehensive project file included all the basic journal entries, Cash flow statements, p&l accounts, balance sheet, ratio analysis, for a particular company. While a specific report needs to cover the company profile, assessment of financial statements, and specific report analysis. From 2022,
commerce students of class 12th will prepare only one specific project, students have extra 10 hours saved with them to score more than 90% marks in Accounts. According to CBSE guidelines, the main objective of preparing the project report is for the following reason Able to state the meaning, objectives, and limitations of financial statement
analysis. Learn the proper use of different tools of ‘financial statements analysis’. Are able to make Comparative Statements and Common Size Statement Understand the Meaning, objective, advantage, and limitation of each Accounting Ratios Learn the formulas for all Types of Ratios Liquidity Ratios: Current ratio and Quick ratio. Solvency Ratios:
Debt to Equity Ratio, Total, Asset to Debt Ratio, Proprietary Ratio and, Interest Coverage Ratio. Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio, and Working Capital Turnover Ratio.
Profitability Ratios: Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio, and Return on Investment Students should always choose a topic that is interesting and also easy for them. When students have a deep and clear understanding of topics, project making activity becomes fun. Moreover, they should also choose a company
with a varied product mix and avoid choosing service-based companies. For this, they can prefer projects on partnership firms or joint companies. And more importantly, choose the topic for which information can be easily gathered from the internet, magazine, and newspaper. Some Accounts Project ideas for class XII are: Ratio analysis for Dabur
Ratio analysis for ITC Ratio analysis for HLL Cash flow analysis for Dabur Cash flow analysis for ITC Cash flow analysis for HLL Segment analysis for Dabur Segment analysis for ITC Segment analysis for HLL The first page of the file should have the project title, information of the student, school, and the teacher concerned.
And, the second page must have an index to indicate columns for the project title, page numbers, date, teacher remark, and signature. Then the body of the project should be presented in this arrangement Title Objective Period of the study Source material Tools of analysis used Processing and tabulation of data Infographic Derivations,
interpretation, and conclusion Assumption if any Firstly, students need to choose whether they want to prepare a cash flow analysis report, ratio analysis report, or segment report. Secondly, students should gather all the financial statements like balance sheet, P&L statement, inventory list, product list, and all other necessary information required
for analysis.
Thirdly, look for the specific question that needs to be answered to process the tabulation of data. For e.g. which is the most profitable product in the product mix? Or should they get more loans for expansion? Or how can they save their cost? Fourthly start analyzing all the data with specific tools like ratios or making charts and tables to help you
reach some conclusion. Fifthly prepare Comparative Statements and Common Size Statement Lastly, start placing all the product documents and sheets neatly in the format prescribed by CBSE This table will help you while preparing projects for ratio analysis, cash flow, and segment analysis. Students can learn how to set the objective, source
material, tools of analysis before preparing the project file. Table with head Ratio analysis Project Cash flow Analysis Segment Analysis Objective Should a company pay all Its liabilities?
Should a company buy x Qty of goods on credit? Should Companies invest in the expansion? Where is the company making maximum expenditure? Which Product is most profitable for the company? Should Company stop producing product X? Source material Debtor creditors list Balance sheet Cash flow statements Profit and loss statements Working
capital Product revenue and expenditure sheet Profit and loss account Tools of Analysis Accounting Ratios Cash and Cash Equivalents, Cash Flows Comparative Statements and Common Size Statement Infographics graphs, pie charts, bar charts graphs, pie charts, bar charts graphs, pie charts, bar charts Conclusion Interpretation Deviation
Conclusion Students who choose to make a cash flow analysis or Segment Analysis report should factor in all the GST included cost price.
How GST has impacted the manufacturing industry and service industry can also be presented as a comparative statement.
Knowing and understanding the project topics in-depth, Always Select an interesting accounting project topic Always keep the project short and precise. Try to add more diagrams, graphs, pie charts, bar charts, and any other infographics Submit a project on time If you have any doubts or problems, talk to your teacher.
Students looking for the class 12 accountancy project pdf can click on the download link below.
In the pdf, you’ll find all the details about the accountancy project for class 12 CBSE 2022-23.
Moreover, in the second pdf, you’ll get the specific Class 12 Accounts project of segment analysis. Specific Project PDF on Segment Analysis Download Class 12 Accountancy Project PDF Download Download the CBSE class 12 accountancy sample papers pdf for the 2023 board exams with their solutions. Total marks:04 The last is the VIVA or oral
exams that are scheduled by the school itself in the month of March. The students receive questions in VIVA related to the project submitted. The purpose of scheduling VIVA is to ensure that projects prepared by the students have helped them to create a proper understanding of the topics. VIVA won’t be more than 5-10 minutes duration and if
students who prepare the project with interest and excitement know all the answers to VIVA questions. If you want to know about important questions of VIVA, then read the entire chapter Chapter 4 Analysis of Financial Statements Chapter 5 Accounting Ratios Chapter 6 Cash Flow Statement from NCERT book 2 of accountancy. VSI is the best
online coaching institute in India. We are India’s best coaching institute providing physical and online classes to class 11&12th students. VSI is also a CA coaching institute in India that provides the best CA coaching for foundation, intermediate and final. CBSE Class 12th students prefer to choose CA as a professional course after 12th commerce.
Now, you have all the details needed to make a Class 12 Accounts project for the 2022-23 session. It is advised to all the students that they should take the project work seriously.
As it will help them in getting good marks in CBSE class 12th result and also make them learn how accounting is done in the real world.
To conclude, you now have the details about the class 12 accountancy project, how to make the specific project of ratio, segment and cash flow analysis, project ideas and the effective tips during the preparation. READ: Courses after 12th VSI Jaipur provides the best 12th commerce classes for Accounts, Maths, BST and Economics subjects. By taking
tuition from VSI, you can build solid concepts and get high grades in your 12th board exams. Further, if you aspire to become a CA, you can join our coaching classes and clear the CA exams on the first attempt. VSI Jaipur is the best CA Coaching in India and our students have scored the ever-highest marks in CA IPCC, Intermediate and Final exams.
Moreover, our 7 students got AIR 1 in the last 10 years. Further, we also provide the best CMA and ACCA coaching classes for all levels. So, join VSI Jaipur’s online or offline classes to get the best class 12th result and build a strong foundation for CA/CMA/ACCA. Share This article Accounts are an integral and one of the mandatory commerce
subjects in class 12, making it an undeniably important discipline to study while targeting to fetch the full score in your class 12th board examination. On the day of your final show-down, it is uncertain what would the question paper on Accounts will offer thus, preparing an attractive project on an alluring topic would help you have a command over
your marks in the subject. Class 12th students are provided with the privilege of selecting the topic by themselves and presenting their thoroughly researched ideas for the external practical examination. Hence, it is vital to creatively put down your thoughts making sure you grab full marks in the project. If you are looking for a sample format and
some latest ideas to start your Accounts project class 12, here is a blog aiming to present you with the same. Accountancy Project for Class 12 CBSE Guidelines 2021-22 CBSE has provided specific guidelines for the Accounts 12 project 2020-21 which are as follows: Here are the three main project work topics from which Accounts class 12 students
2021-22 can choose from: Collection of source documents, recording accounting transactions using vouchers as well as preparation of vouchers. A comprehensive project taking any sole proprietorship business and this Accounts project for Class 12 must state the following: Journal Entries Ledgers Preparation of Trade Balance Balance Sheet Trading
Account Profit and Loss Account Use Pie Chart or Bar Diagram to show Incomes, Profit or Lose and Assets and Liabilities Prepare a bank reconciliation statement using a given cashbook as well as the passbook which must have 20 to 25 transactions. Accounts Project Format While drafting your project, you must follow a formal tone and format so
that the external examiner will be able to easily apprehend your thoughts. You can go by the below-mentioned format in your Accounts project: Name of the Project: Choose a catchy title for it but it must be crisp and relevant to the content. Objective: Objective refers to a short description in which you mention the basic principle and the concepts
you are aiming to explain. For Example: The project aims to impart to every student the foundational knowledge of the complete accounting cycle and appreciate the true meaning of Accounting which seems to be a process of classifying, summarizing and recording the accounting information as well as its analysis and interpretation. Period of Project:
The duration that was taken to complete the project has to be mentioned here. Source Material: The case study based on which the accounting cycle has to be completed. Along with this, the Accounts project of class 12 will include the sources of information you used to gather the essential information from. Processing Data: While collecting and
processing the various data here are some important points that you must mention- Ledgers Journals Trial Balance Final Accounts Adjusting Entries Tools of Analysis: You can use Pie charts, bar graphs and pictorial graphs as your representing tools.
Processing Formats a) Journal Rankings Note: It is mandatory to write the narration for every journal entry. b) Ledger Accounts While completing your Accounts Project Class 12, you must keep in mind to prepare the ledgers in the following orders: Real Accounts Personal Accounts Nominal Accounts For personal or real accounts, keep in mind to
carry the closing balance of the current year as the opening balance of the next year and then close the account. For normal accounts transfer the balance of the account to the trading account or the profit and loss account c)Trial Balance Trial Balance of ———- as at d) Adjusting Journal Entries When preparing your Accounts Project Class 12,
students must keep in mind that the format is the same as journal entries It is compulsory to write the narration for these entries e) Final Accounts: Trading Account, Profit and Loss Account along with Balance SheetTrading and Profit and Loss Account of——-For the year ending—–