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Main objective of analysis of financial statements is
To know the financial strength
To make a comparative study with other firms
To know the efficiency of management
All of the Above
- Option 1: To know the financial strength. This is a key objective, as financial analysis helps in assessing the financial position and solvency of a business.
- Option 2: To make a comparative study with other firms. Financial analysis often includes benchmarking against industry peers to understand competitive standing.
- Option 3: To know the efficiency of management. Evaluating management efficiency is part of financial analysis, ensuring that resources are being used effectively.
- Option 4: All of the Above. This is correct. The main objective of financial statement analysis encompasses understanding financial strength, comparing with other firms, and assessing management efficiency.
Correct Answer: Option 4 (All of the Above)
By: santosh ProfileResourcesReport error
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