Q 1.Identify the groups (operating, investing, and financing activities) into which business activities are categorized for financial reporting purposes and classify any business activity in the appropriate group.

Q 2.Explain how financial statements reflect the business activities of a company.

Q 3.Why balance sheet is also known as snapshot of the company. Explain the accounting equation in its basic and expanded forms.

Q 4.What is the concept of revaluation and sloe explain in detail it's the effects of revaluation of assets on financial statements?

#5 : A) Why ratio analaysis is important for decision making process.

B)Find out the ratios for the below Information (i) Current ratio (ii) Quick ratio (iii) Debt to equity (iv) Total debt to Total Assets (v) Payable Turn over (vi) Receivable Turnover ratio.

Interpret the Ratio as well

Cash,

330000

Long term debt

25000

Retained earnings

499000

Common stock

250000

Bank loan (short term)

36000

Retained earnings

499000

Account Receivable

185000

Account Payable

229000

Inventory

250000

Purchases

280000

Net fixed assets

475000

Sale

300000

Accruals

201000

Unearned Revenue

4500

Bank loan(short term)

36000

Accrued Expenses

10320

Goodwill

3580

Property

25500