Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:
What is/ are the main objective (s) of analysis of financial statements?
Options:
To know the financial strength
To make a comparative study with other firms
To know the efficiency of management
All of the Above
Correct Answer:
All of the Above
Explanation:
The main objective of the financial statement analysis for any company is to provide the necessary information required by the financial statement users for informative decision making, assessing the current and past performance of the company, predicting the success or failure of the business, To know financial strength, to make comparative study etc.