Match the following-

1) c, 2) d, 3) a, 4) b

* Significance- It helps in presenting the complex data in simplified form.

* Type of analysis-  Horizontal analysis is performed horizontally across time periods, while vertical analysis is performed vertically inside of a column. Horizontal analysis represents changes over years or periods, while vertical analysis represents amounts as percentages of a base figure. Horizontal analysis usually examines many reporting periods, while vertical analysis typically focuses on one reporting period.

* Tools of analysis- Tools of Financial Analysis Commonly used tools of financial analysis are: Comparative statements, Common size statement, trend analysis, ratio analysis, and cash flow analysis.

* Limitation- Some limitations of financial analysis are:
1. Financial analysis does not consider price level changes.
2. Financial analysis may be misleading without the knowledge of the changes in accounting procedure followed by a firm.
3. Financial analysis is just a study of reports of the company.
4. Monetary information alone is considered in financial analysis while non-monetary aspects are ignored.
5. The financial statements are prepared on the basis of accounting concept, as such, it does not reflect the current position.