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Class 12 DK Goel Solutions Volume 2 Chapter 2 - Financial Statements Analysis

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Last updated date: 17th May 2024
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DK Goel Class 12 Solutions Available on Vedantu for Free Download

Accountancy is an important subject in commerce — being the foundation for students who want to build a career in this field. Though the textbook uses a methodical and functional approach to explain the concepts, to have an in-depth understanding of topics you should refer to DK Goel Accountancy Class 12 Volume 2 Solutions. The solutions are easy to comprehend and there is a precise solution for all the questions. 

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Financial Statements Analysis DK Goel Solutions

Accountancy is the first step to understand current economic situations, the flow of data, as it is the source of financial information. You will learn to analyze a company’s financial statement. It contains objectives, uses, and methods of Financial Statements Analysis. Download DK Goel Accountancy Class 12 Solutions Chapter 2 Pdf from our website and app.  


Students Learn the Following in DK Goel Accountancy Class 12 Volume 2 Solutions

Meaning of Financial Analysis - Financial statements give a mass of complex information in absolute monetary terms and reveal a bit about the solvency, liquidity, and profitability of the enterprise.


Objectives of Financial Analysis

  • To measure the earning capacity or profitability.

  • To furnish useful data to the management.

  • To identify the trend of the business.

  • To measure the financial strength.

Importance of Financial Analysis

  • Significance for government

  • Significance for researchers

  • Significance for creditors

  • Significance for Employees


Uses of Analyzing the Financial Statements.

  • Helpful in making credit decisions.

  • Helpful in making investment decisions.


Quantitative Analysis of Financial Statements is Done Via Ratio Analysis.

  • 4 types – Liquidity ratio, solvency ratio, activity ratio, profitability ratio.

Comparative statements that show changes in each item of financial stats element in absolute amount with a base of preceding counting period have two types- comparative balance sheet and comparative statement of profit and loss.

DK Goel Solutions Class 12 Chapter 2 Financial Statements Analysis helps to focus on fundamentals to help you with basic concepts in a systematic manner which strengthens your foundation in the subject. These solutions are based on the latest syllabus and explained using a holistic approach which makes it easier to understand to average students.


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1. List a Few Objectives of Financial Analysis

  • To measure the earning capacity or profitability.

  • To measure the solvency.

  • To identify the trend of the business.


DK Goel Solution for Class 12 Accountancy Volume 2 Chapter 2 Tips For A Better Score

  • Using DK Goel Accountancy Class 12 Solutions Chapter 2 study materials, you have your optimum scores.

  • Make short forms or mnemonics for formulas or financial ratios that are easy to remember.

  • Focus on the word problems and practice making balance sheets along with subjective answers. 

  • Create flowcharts or small notes to memorize topics.


Conclusion

DK Goel Solutions Class 12 Chapter 2 Financial Statements Analysis gives you very handy learning material that is a compact and student-friendly holistic approach. But remember your only way to success is through practice and hard work.

FAQs on Class 12 DK Goel Solutions Volume 2 Chapter 2 - Financial Statements Analysis

1. How often do I need to study accounts to score well? 

The answer to this is Daily. You need to practice 3-4 problems daily to get a hang of the subject. Accountancy is just like Mathematics, the more you practice, the better you get and obviously, you then score better. Since it's class 12 and you have to take the board exams as well, the level of practise should be a level higher. Here’s a trick: whatever topic your teacher teaches you at School, come home and revise it. You can revise it by watching Vedantu’s videos or Revision Notes, and then practice at least 5 problems from the exercise. You’ll not only get better but you will ace the subject! 

2. Why do you recommend DK Goel solutions? 

We recommend DK Goel Solutions because each problem is methodically solved and it gives the students proper insight as to why and how each step is arrived at. Unlike other guides, the content is not jumbled up. It is a mix of easy and tough questions, systematically placed in the exercises column. Once the student is clear with the basics after attempting basic questions, he/she can proceed to the tougher ones. This strategy not only boosts your confidence but also helps you score better. 

3. How can Vedantu help me score well in accounts? 

We have a collection of pre-recorded videos curated by our talented and experienced faculty. Our mentors have a strong teaching experience and know exactly where students go wrong, and the topics in which they need extra attention. If you are on a subscription plan with us, you will have these mentors teach you and address your doubts in a live class. You can also ask your doubts anytime by writing on the Vedantu doubts app and your mentors will get back to you with a solution at the earliest. 

4. Is Financial Analysis an important section? 

Financial Analysis is not just important, but an extremely important and scoring section of the Class 12 Accountancy Syllabus. The basics of financial analysis once clear can help you go a long way in your career as without accurate financial analysis, no business can run smoothly. It can help you calculate profitability, predict losses in time, get a hint about the changing market trends and gauge your solvency status. You can calculate all of these with the help of ratios; namely, Liquidity ratio, Activity ratio, Solvency ratio, and Profitability ratio.

5. Do I need to take extra tuition if I am studying from Vedantu? 

If you are following what is being taught in the class, either live or pre-recorded sessions and your doubts are being addressed by the mentors. You are downloading Revision Notes and if you are also practising the worksheets and writing regular tests on the Vedantu platform- which most probably you would be doing because they are so much fun to do! You would not need any extra tuition to clear the exams. If there is something you would like us to pay more attention to, we are all ears! You can shoot us an email and we will get back in no time.  You will also find all the chapter wise solutions easy to access on the Vedantu app and website. These excellent study materials are available to students for free of cost.