Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

How do financial analysis techniques assist in financial control?

Options:

By predicting stock market fluctuations

By analyzing the causes of major deviations in financial operations

By assessing the political climate

By evaluating technological advancements

Correct Answer:

By analyzing the causes of major deviations in financial operations

Explanation:

Financial analysis techniques play a crucial role in financial control by helping identify and understand the reasons for major deviations in a company's financial operations.