Question

Which one of the following is NOT a tool for analysing the financial statements of a company?

Options

• Comparative Statements

• Revaluation Account

• Cash Flow Statement

• Ratio Analysis

Answer 1

Revaluation Account

Explanation:

• Comparative Statements are used to compare financial data over different periods.
• Cash Flow Statement helps analyse inflows and outflows of cash.
• Ratio Analysis evaluates financial performance using ratios.
• Revaluation Account is used in partnership accounting (e.g., admission/retirement of partners), not for analysing a company’s financial statements.