Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

Financial statement analysis is a...................process.

Options:

Judgemental

Opinion

Expertise

Cooperative

Correct Answer:

Judgemental

Explanation:

The essence of financial statement analysis lies in its judgmental nature, where experienced analysts utilize their expertise to interpret the data, providing essential context to the numbers. This facilitates prudent decision-making, despite uncertainties inherent in the business environment.