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Which of the following is a limitation of financial analysis? - Accounts

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Question

Which of the following is a limitation of financial analysis?

Options

  • It is just a study of reports of the company.

  • It judges the ability of the firm to repay its debts.

  • It identifies the reasons for change in financial position.

  • It ascertains the relative importance of different components of the financial position of the firm.

MCQ
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Solution

It is just a study of reports of the company.

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Chapter 10: Financial Statements Analysis - OBJECTIVE TYPE QUESTIONS [Page 10.11]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 10 Financial Statements Analysis
OBJECTIVE TYPE QUESTIONS | Q A. 11. | Page 10.11
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