Financial statement analysis does not consider..........................level changes.

Price

The correct answer is option 2- Price.

Financial statement analysis does not consider Price level changes.

Price level changes refer to fluctuations in the general level of prices in an economy, often due to inflation or deflation. Traditional financial statement analysis typically uses historical cost accounting, where transactions are recorded at their original historical cost rather than adjusted for changes in the price level. This means that the values reported in financial statements may not reflect the current purchasing power of money due to inflation or deflation. Therefore, price level changes are not directly accounted for in financial statement analysis based on historical cost accounting principles.