Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:
Financial analysis helps in knowing............................. of the company.
Options:
Strengths
Weakness
Quality
Both strengths and weakness
Correct Answer:
Both strengths and weakness
Explanation:
Financial analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing relationships between the various items of the balance sheet and the statement of profit and loss.