Question

Analysis of Financial Statement is significant for ______.

Options

• Management

• Creditors

• Employees

• All of these.

Answer 1

All of these.

Explanation:

Financial statement analysis is vital for all three groups to make informed decisions. Management uses it to evaluate operational efficiency and plan future corporate policies. Creditors analyse the data to check liquidity and ensure their loans will be repaid on time. Employees track profitability because it directly impacts their job security, salary increments, and annual bonus payouts.