Practicing Success
The analysis of financial statement by a shareholder is an example of: |
Horizontal Analysis Vertical analysis External Analysis Internal Analysis |
External Analysis |
The analysis which is conducted by an outsider without having any access to the basic accounting record of the firm, it is called external analysis of financial statements. These outsiders may be creditors, shareholders, investors or the credit agencies. This analysis serves only limited purpose because it is dependent on the published financial data of the firm. |