Question

Which one of the following items is not a method/tool of analysis of financial statements?

Options

• Accounting Ratio

• Break Even Point

• Statement of Receipts and Payments

• ’Fund Flow Statement

Answer 1

Statement of receipts and payments

Explanation:

Tools of financial statement analysis include Accounting Ratios, Break Even Point analysis, Fund Flow Statement, and others like Cash Flow Statement and Comparative Statements. The Statement of Receipts and Payments is a cash book summary, not a tool for financial statement analysis.