Question : Employees and Trade Unions are Interested to know, from financial statement analysis, are:
Option 1: profitability
Option 2: operating sustainability
Option 3: financial strength
Option 4: All of the above
Correct Answer: financial strength
Solution : Answer = financial strength
It is because financial statement analysis provides information on a company's financial performance and health, workers and trade unions are interested in it. Hence, the correct option is 3.
Question : Which of the following statements is true?
Option 1: An objective of financial analysis is to determine operating efficiency and profitability.
Option 2: Determining operating efficiency and profitability is not an objective of financial analysis.
Option 3: Financial analysis is used for credit analysis.
Option 4: The purpose of financial statement analysis by trade creditors is to determine whether the amount due to them is safe.
Question : The supplier of goods are interested to know, from financial statement analysis are ______.
Option 1: Liquidity
Option 2: Efficiencies
Option 3: Profit
Option 4: None of the above
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