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 correct?

Option 1: Past financial statement analysis helps in assessing developments in future, especially in the next year.

Option 2: Financial analysis helps the users of the financial statements to understand the complicated matter in a simplified manner.

Option 3: On the basis of financial analysis we can take a variety of decisions in various areas such as securities analysis, credit analysis, debt analysis, dividend decision and general business analysis.

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

Question : Statement 1:   Financial incentives are the only factors that motivate employees.

Statement 2:   Various factors, including intrinsic motivation, impact employee motivation.

Option 1: Both statements are correct.
 

Option 2: Statement 1 is correct, and statement 2 is false.
 

Option 3: Both statements are incorrect.

Option 4: Statement 2 is correct, and statement 1 is incorrect.

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