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Question
Management is interested in financial analysis since ______.
Options
It provides information about the overall financial performance of the enterprise.
It provides information about the financial position of the enterprise.
It provides information about the financial performance and financial position of the enterprise as a whole and its various divisions.
None of the above.
MCQ
Fill in the Blanks
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Solution
Management is interested in financial analysis since it provides information about the financial performance and financial position of the enterprise as a whole and its various divisions.
Explanation:
Management runs the entire business, so they need detailed insights. Financial analysis gives them complete information about the financial performance (profits) and financial position (assets/liabilities) of the company as a whole as well as its various individual divisions. This helps them track separate departments, fix accountability, and make future business plans.
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