Question

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

Options

• Fund Flow Statement

• Common Size Statement

• Statement of Trade Receivables

• Cash Flow Statement

Answer 1

Statement of trade receivables

Explanation:

Fund flow statement, common size statement, and cash flow statement are established tools/methods for financial statement analysis. However, the statement of trade receivables is not a recognized method/tool of financial analysis but rather a component or a detailed statement related to receivables. Thus, it is not considered a tool of financial statement analysis.