_______ is concerned with establishment of relationship between items of profit and loss a/c and Balance-sheet and to provide base for interpretation of information.

Summarizing

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Analysis

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Classifying

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Interpreting

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Solution

The correct option is B Analysis
Analysis is concerned with establishment of relationship between items of profit and loss a/c and balance-sheet and to provide base for interpretation of information. The recorded financial data is analysed and interpreted in a manner that the end-user can make a meaningful judgement about the financial condition and profitability of the business operations.

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Similar questions

Q. General Instructions for preparation of balance sheet and statement of profit and loss of a company are provided in _________ of the Companies Act, 2013.

Q. From the following Trial Balance and additional information of Mr. Gaurav, a proprietor, prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date:

Particulars		Dr. Balance (₹)	Cr. Balance (₹)
Building		1,60,000	…
Wages		26,000	…
Machinery		16,000	…
Salaries and Wages		41,600	…
Debtors		38,700	…
Capital		…	2,23,100
Purchases		56,500	…
Sales		…	1,00,700
Creditors		…	12,500
Income Tax		2,000	…
Drawings		500	…
Input CGST A/c		10,000	…
Input SGST A/c		10,000	…
Output CGST A/c		…	12,500
Output SGST A/c		…	12,500
	Total	3,61,300	3,61,300

Closing Stock at cost ₹ 1,00,000 but its market value is ₹ 88,500.

Q. A's trial balance provides you the following information: Bad debts Rs.1,000. It is desired to maintain a provision for bad debts at Rs. 2,000. Amount debited to profit and loss a/c will be_________.

Olympiad Ltd. has an opening debit balance of Rs. 5,00,000 in Reserves and Surplus as Balance of Statement of Profit & Loss. It earned a profit of Rs. 8,00,000 for the year ended 31st March, 2017. How would you show these items in the Balance Sheet and notes to accounts ?

Q. ____________ involves the technique of collecting, sorting, relating, interpreting and computing data items to provide meaningful and useful information for decision-making.

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