Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

What is the name given to the process of critical evaluation of the financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm?

Options:

Financial Statement

Analysis

Financial Statement Analysis

None of these

Correct Answer:

Financial Statement Analysis

Explanation:

The process of critical evaluation of the financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm is called ‘Financial Statement Analysis’.