Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

Why is it essential for a finance manager to be well-equipped with the tools of analysis?

Options:

To improve employee morale

To develop new financial products

To make rational decisions for the firm

To predict future market trends

Correct Answer:

To make rational decisions for the firm

Explanation:

A finance manager plays a crucial role in the financial decision-making process of a company. They are responsible for analyzing financial data, evaluating investment opportunities, managing resources, and ensuring the company's financial stability and growth. To effectively fulfill these responsibilities, a finance manager must be well-equipped with the tools of analysis.