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 : The objective of financial statement analysis is _______ comparison.

Option 1: Inter firm

Option 2: Intra firm

Option 3: Both 1 and 2

Option 4: None of the above

Question : The objective of financial statement analysis is _______ comparison.

Option 1: Inter firm

Option 2: Intra firm

Option 3: Both 1 and 2

Option 4: None 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 : Long-term and short-term solvency of an enterprise can be assessed on the basis of ___________.

Option 1: Financial statement analysis

Option 2: Inter-firm Comparison

Option 3: cross-sectional analysis

Option 4: None of the above