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
Option 4: All of the above
Correct Answer: All of the above
Solution : Ratio analysis, average analysis, and trend analysis are the techniques, instruments, or methodologies used in the study and interpretation of financial accounts. To help you make wiser financial decisions, financial statement analysis involves examining a company's financial statements.
Hence the correct answer is option 4.
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
Question : Which of the following is a method for analyzing financial statements?
Option 1: Variance analysis
Option 2: Trend analysis
Option 3: Break-even analysis
Option 4: None of the above
Question : Comparative financial data are then analyzed with reference to financial characteristics like profitability, solvency and liquidity are called ______.
Option 1: Comparison
Option 2: Ratio Analysis
Option 3: Interpretation
Question : Financial Analysis includes:
Option 1: Analysis
Option 2: Interpretation
Option 3: Both 1 and 2
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