The analysis of the actual movement of money inflow and outflow in an organisation is called........
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Cash flow Analysis
Cash flow analysis studies the actual movement of cash into and out of the business during a period. It is the idea behind the cash flow statement, which shows the inflows and outflows from operating, investing and financing activities. The other options are different tools: comparative analysis is also called horizontal analysis, common size analysis is vertical analysis, and trend analysis studies results over a series of years.
NCERT (2026-27 edition):
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