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The most commonly used tools for financial analysis are ______. - Accounts

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Question

The most commonly used tools for financial analysis are ______.

Options

  • Comparative Statements

  • Common Size Statements

  • Accounting Ratios

  • All of the above

MCQ
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Solution

The most commonly used tools for financial analysis are comparative statements, common size statements and accounting ratios.

Explanation: 

These tools help simplify and present financial data in an understandable form by comparing figures over time (Comparative Statements), expressing items as percentages of a base figure (Common Size Statements), and analysing relationships between financial figures (Accounting Ratios). All these tools are widely used for thorough financial analysis.

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Chapter 11: Tools for Financial Analysis : Comparative Statements - OBJECTIVE TYPE QUESTIONS [Page 11.43]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 11 Tools for Financial Analysis : Comparative Statements
OBJECTIVE TYPE QUESTIONS | Q A. 1. | Page 11.43
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