Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:
Which one of the following is the most common tool used for the analysis of financial statements?
Options:
Accounting Ratios
Comparative Statements
Common-size Statement
All the above
Correct Answer:
All the above
Explanation:
All tools are used by the company according to their use.Commonly used tools of financial analysis are: Comparative statements, Common size statement, trend analysis, ratio analysis, and cash flow analysis