Question : Tools or Techniques of Financial Statement Analysis are
Option 1: Comparative Statements
Option 2: Common-size Statements
Option 3: Ratio and Cash flow statement
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
Tools or techniques of financial statement analysis include Comparative Statements, which compare financial data across different periods; Common-size Statements, which express each line item as a percentage of a base figure; and Ratio Analysis, which assesses relationships between financial variables. Additionally, Cash Flow Statements analyze cash inflows and outflows. Hence, the correct option is 4.
Question : Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?
Option 1: Ratio Analysis
Option 2: Average Analysis
Option 3: Trend Analysis
Question : Which of the following is not a tool of Analysis of Financial Statements?
Option 2: Common-size Statement
Option 3: Comparative Statement
Option 4: Statement of Profit & Loss
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,
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