Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:
Financial analysis helps in measuring the success of the company’s operations, appraising the individual’s performance and evaluating the system of internal control. Who is interested in this type of analysis?
Options:
Investors
Government
Suppliers
Management
Correct Answer:
Management
Explanation:
Management of the firm would be interested in every aspect of the financial analysis. It is their overall responsibility to see that the resources of the firm are used most efficiently and that the firm’s financial condition is sound. Financial analysis helps the management in measuring the success of the company’s operations, appraising the individual’s performance and evaluating the system of internal control.