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CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements Complete Details

CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements : Our team member provides here all CBSE Class 12 Accountancy best books, video classes and CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements free download study materials. Here we gave direct download links for CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements in pdf format. Download this CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements Complete Details in PDF Format and Read Well.

CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements Complete Details

CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements : Accountancy or accounting is the job of sharing financial information about a business to managers and shareholders (people who have invested in the business).[1]Accounting is often called the “language of business”. Accountants are people who do accounting, and also carry out the auditing or checking of a company’s books and records. In Britain, this auditing is often carried out by a qualified person called a “chartered accountant”.

When accountants do accounting work, they write in the books of account (ledgers) that belong to a company. Every time money is spent or earned, it is written in the ledger. The information in the ledger is used to prepare the company accounts monthly, quarterly (every three months) and annually (every year). These annual accounts show what money the company has taken in over time and what it has spent money on. It also shows if the company made a profit in the year (if it made more money than it spent), who owes the company money, who the company owes money to, and any big expensive items the company has bought which they expect to use for many years. Lenders, managers, investors, tax authorities (the people who collect taxes for the government) and other decision-makers look at these annual accounts. Managers and investors look at the ledger and make decisions about how to spend money in the future. Lenders like banks look at the accounts before they lend money to the company. Tax authorities look at them to check that the company is paying the correct amount of taxes.

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CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements Complete Details

CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements :  Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a company’s financial statements to make better economic decisions. These statements include the income statement, balance sheet, statement of cash flows, and a statement of changes in equity. Financial statement analysis is a method or process involving specific techniques for evaluating risks, performance, financial health, and future prospects of an organization.[1]

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It is used by a variety of stakeholders, such as credit and equity investors, the government, the public, and decision-makers within the organization. These stakeholders have different interests and apply a variety of different techniques to meet their needs. For example, equity investors are interested in the long-term earnings power of the organization and perhaps the sustainability and growth of dividend payments. Creditors want to ensure the interest and principal is paid on the organizations debt securities (e.g., bonds) when due.

Common methods of financial statement analysis include fundamental analysis, DuPont analysis, horizontal and vertical analysis and the use of financial ratios. Historical information combined with a series of assumptions and adjustments to the financial information may be used to project future performance. The Chartered Financial Analyst designation is available for professional financial analysts.

Financial ratio analysis

Financial ratios are very powerful tools to perform some quick analysis of financial statements. There are four main categories of ratios: liquidity ratios, profitability ratios, activity ratios and leverage ratios. These are typically analyzed over time and across competitors in an industry.

  • Liquidity ratios are used to determine how quickly a company can turn its assets into cash if it experiences financial difficulties or bankruptcy. It essentially is a measure of a company’s ability to remain in business. A few common liquidity ratios are the current ratio and the liquidity index. The current ratio is current assets/current liabilities and measures how much liquidity is available to pay for liabilities. The liquidity index shows how quickly a company can turn assets into cash and is calculated by: (Trade receivables x Days to liquidate) + (Inventory x Days to liquidate)/Trade Receivables + Inventory.
  • Profitability ratios are ratios that demonstrate how profitable a company is. A few popular profitability ratios are the breakeven point and gross profit ratio. The breakeven point calculates how much cash a company must generate to break even with their start up costs. The gross profit ratio is equal to (revenue – the cost of goods sold)/revenue. This ratio shows a quick snapshot of expected revenue.
  • Activity ratios are meant to show how well management is managing the company’s resources. Two common activity ratios are accounts payable turnover and accounts receivable turnover. These ratios demonstrate how long it takes for a company to pay off its accounts payable and how long it takes for a company to receive payments, respectively.
  • Leverage ratios depict how much a company relies upon its debt to fund operations. A very common leverage ratio used for financial statement analysis is the debt-to-equity ratio. This ratio shows the extent to which management is willing to use debt in order to fund operations. This ratio is calculated as: (Long-term debt + Short-term debt + Leases)/ Equity.
Requirements
  • No prior knowledge of accounting is assumed or needed
  • There is nothing to buy or pay for – everything is included for free
  • You’ll need a notebook and a pen
Description

Accounting is one of the most important skills for people pursuing a career in Finance.

It helps you understand whether a business is profitable.

It gives you an idea of a company’s size.

It helps you use the past in order to take action in the present and change the future.

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However, it’s essential that you understand it well.

If you want to become…

  • a Financial Analyst
  • an Accountant
  • an Auditor
  • a Business Analyst
  • a Financial Controller
  • a Financial Manager
  • a CFO
  • a CEO
  • an Investment Banker
  • an Equity Research Analyst
  • an Investor
  • an Entrepreneur
  • Someone who is involved with a business and would like to be successful

Then you simply have to learn Accounting and Financial Statement Analysis. There is no way around it.

But how can you do that if you have very limited time and no prior training? And how can you be sure that you are not missing an important piece of the puzzle?

Accounting & Financial Statement Analysis: Complete Training is here for you. One of the better Finance courses available on Udemy, it includes everything you’ll need. We will start from the very basics and then gradually build a solid foundation that will serve you well throughout your career.

What makes this course different from the rest of the Accounting courses that are out there?

  • High quality of production – HD video and animations (This isn’t a collection of boring lectures!)
  • Knowledgeable instructor (experience in Big 4 Accounting + Master in Finance)
  • Financial Statement Analysis: We will learn how to use information about the past in order to predict how a business will fare in the future
  • Extensive Case Studies that will help you reinforce everything that you’ve learned
  • Excellent support: If you don’t understand a concept or you simply want to drop us a line, you’ll receive an answer within 24 hours
  • Dynamic: We don’t want to waste your time! The instructor keeps up a very good pace throughout the whole course.
  • Bonus prizes: Upon completion of 50% and 100% of the course you will receive two bonus gifts

How come accounting is so important?

It’s about money, right? If you want to understand how money is coming in and going out of a business, you will have to learn accounting.

Here are 5 more reasons why you should take this course and learn accounting:

  • Jobs. A solid understanding of accounting usually lands you a sweet job as an accountant and opens doors for a number of career paths.
  • Promotions. Accountants are promoted very easily inside large corporations
  • Mick Jagger studied accounting
  • Secure Future. Accounting skills remain with you and provide extra security. You won’t ever have to fear unemployment
  • Girls dig accountants! Guys who can tell the difference between debits and credits are proven to be the most popular with wome

Students of this course who complete 50% of the lessons get full, lifetime access to our five-star rated course “Finance 101: Financial Skills for the Real World”. It has a full price of $95.

Students of this course who complete 100% of the lessons get full, lifetime access to our five-star rated course “Financial Modeling: Build a Complete DCF Valuation Model”. It has a full price of $95.

Please don’t forget that the course comes with Udemy’s 30-day unconditional money-back-in-full guarantee. And why not give such a guarantee, when we are convinced that the course will provide a ton of value for you?

Who is the target audience?
  • Aspiring Accountants and Financial Analysts
  • Aspiring Investment Bankers
  • Aspiring Financial Controllers
  • Business Owners
  • Accounting Students
  • Anyone wishing to understand a company’s financials
  • Anyone wishing to be successful in the world of Business & Finance

CBSE Class 12 Commerce Accountancy Analysis Of Financial Statements Complete Details

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