Question : Which of the following statement is correct with respect of Analysis of Financial Statements?

Option 1: Analysis of Financial Statements is a systematic process of analyzing the financial Information in the financial statements to understand and take economic decisions.

Option 2: Analysis of Financial Statements is a study of relationships among various financial values as set out in the financial statements, i.e., Balance Sheet, Statement of Profit and Loss and Cash Flow Statement.

Option 3: Financial Statement Analysis is largely a study of relationships among the various financial factors in a business,

Option 4: All of the above 

Question : Which of the following statement is correct with respect of Analysis of Financial Statements?

Option 1: Analysis of Financial Statements is a systematic process of analyzing the financial Information in the financial statements to understand and take economic decisions.

Option 2: Analysis of Financial Statements is a study of relationships among various financial values as set out in the financial statements, i.e., Balance Sheet, Statement of Profit and Loss and Cash Flow Statement.

Option 3: Financial Statement Analysis is largely a study of relationships among the various financial factors in a business,

Option 4: All of the above 

Question : Which of the following statements is incorrect?

Option 1: Ignores the Qualitative Elements is a limitation of Financial Statement Analysis

Option 2: Not free from personal bias is  a limitation of Financial Statement Analysis

Option 3: Ignores the price level changes is a limitation of Financial Statement Analysis

Option 4: None of the above