Assignment 2

Submission Date: 3/11/2014

1. What do you understand by common size statement? What is its purpose?
Explain with suitable examples.
2. Discuss utility and significance of financial statements to various parties
interested in business concern.
3. Explain the limitation of financial accounting.
4. Explain meaning and objective of financial statement analysis.
5. Describe briefly various steps of accounting process
6. Briefly explain Generally Accepted Accounting Principles
7. Who are users of accounting information, and why do the users need
accounting information? How this information helpful to the user?
8. Elucidate the features of a corporate balance sheet
9. Give in details the pro-forma of Corporate Balance sheet and Profit and
loss Account in vertical format.
10.Describe the various tools used for doing financial analysis.