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Which of the following is a tool of financial analysis?

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Question

Which of the following is a tool of financial analysis?

Options

  • Comparative Statements

  • Common-size Statements

  • Cash Flow Statement

  • All of these.

MCQ
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Solution

All of these.

Explanation:

All the listed options are standard financial tools. Comparative statements and common-size statements simplify structural data by showing growth trends and percentage compositions. Similarly, the cash flow statement serves as a vital tool to track the actual inflows and outflows of liquid cash.
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Chapter 3: Tools of Financial Statement Analysis-Comparative Statements and Common-Size Statements - QUESTIONS [Page 3.26]

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TS Grewal Accountancy Analysis of Financial Statements [English] Class 12
Chapter 3 Tools of Financial Statement Analysis-Comparative Statements and Common-Size Statements
QUESTIONS | Q 2. | Page 3.26
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