Question
 Which of the following is not a tool of financial
statement analysis?Solution
In finance, window dressing refers to the efforts taken to make the financial statements of a business look better before they are publicly released. This is not a tool for financial statement analysis. Rest of the options form part of financial statement analysis.
A machine costing ₹8,00,000 has a salvage value of ₹80,000 after 10 years. The company follows Straight Line Method (SLM). During the 4th year, it s...
Which method of depreciation results in equal depreciation expense each year?
A plant was purchased for ₹10,00,000. After 4 years, its book value stands at ₹6,56,100 using the diminishing balance method. The annual rate of dep...
A company acquired a machine for ₹12 lakhs with an expected useful life of 6 years and residual value of ₹1.2 lakh. Using the straight-line method, ...
A machine was purchased for ₹1,00,000. Depreciation is charged at 10% per annum under the Diminishing Balance Method. The book value of the machine at...
A machinery costing ₹10 lakhs has a useful life of 5 years and a salvage value of ₹1 lakh. Using the straight-line method, the firm changes the usef...
A machine costing ₹8,00,000 has a useful life of 5 years and scrap value of ₹50,000. Using WDV method at 30%, what will be the book value at the end...
Which method of depreciation is NOT recognized by the Companies Act, 2013?
A plant was purchased on 1st April 2021 for ₹5,00,000. Depreciation is charged at 15% p.a. under the WDV method. On 1st October 2023, the plant was so...
A company buys a machine for ₹12,00,000 and expects to use it for 8 years with residual value ₹80,000. Under straight-line method, annual depreciati...
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