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P2 C4 ANALISIS OF FINANCIAL STATEMENT — Elements of Account STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP2 C4 ANALISIS OF FINANCIAL STATEMENT1 Mark
Question
What is financial analysis?
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Answer

Financial statements represent information and results.
  • But after preparation of financial statements they are rearranged in such a way that they become comparable.
  • The different stakeholders take their decisions on the basis of financial statements which are prepared in a comparable form.
  • This entire process is known as financial analysis.

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