Practicing Success
'The tools for analysis help in studying accounting data so as to determine the continuity of the operating policies, the investment value of the business, credit ratings and testing the efficiency of operations.' For whom such a type of analysis of a company is necessary? |
Management Investors Finance manager Employees |
Finance manager |
The correct answer is option 3- Finance manager. Financial analysis focusses on the facts and relationships related to managerial performance, corporate efficiency, financial strengths and weaknesses and creditworthiness of the company. A finance manager must be well-equipped with the different tools of analysis to make rational decisions for the firm. The tools for analysis help in studying accounting data so as to determine the continuity of the operating policies, investment value of the business, credit ratings and testing the efficiency of operations. The techniques are equally important in the area of financial control, enabling the finance manager to make constant reviews of the actual financial operations of the firm to analyse the causes of major deviations, which may help in corrective action wherever indicated.
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