Which of the following statement is False?

The correct answer is Option (4) → Financial statements do not include Cash Flow Statement.

Financial statements of a company include the balance sheet, the statement of profit and loss and also the cash flow statement, so a statement saying they do not include it is false.

Option (1) Statement of profit and loss shows the operating performance of an enterprise for a period of time. — A true statement. It reports the results of operations for the year.

Option (2) Financial statements of an enterprise include statement of profit and loss, statement of balances of liabilities and assets, and Cash Flow Statement. — A true statement. These are the financial statements of a company.

Option (3) Financial statements help an analyst to take decisions. — A true statement. Analysis of the statements helps an analyst arrive at a decision.

Option (4) Financial statements do not include Cash Flow Statement. — Correct. This is the false statement.