Question : Financial Analysis includes:
Option 1: Analysis
Option 2: Interpretation
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
Presenting financial facts in an understandable manner is the aim of analysis and interpretation. It helps accounting users evaluate a company's long-term financial success. Hence, the correct option is 3.
Question : …………….. analysis of financial statement is based on one year data.
Option 1: Vertical analysis
Option 2: Horizontal analysis
Question : …………. financial statement analysis is dynamic.
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