Which of the following is not the tool for analysis of Financial Statements?
Options:
Comparative Statements
Common Size Statements
Trend Analysis
Balance sheet
Correct Answer:
Balance sheet
Explanation:
The correct answer is Option (4) → Balance sheet
Comparative Statements, Common Size Statements, and Trend Analysis are tools used for analysis of financial statements because they help in interpreting and comparing financial data over time or across firms.
The Balance Sheet, however, is a financial statement itself, not a tool of analysis. It simply shows the financial position of a business on a particular date — i.e., its assets, liabilities, and capital.
