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Which of the following financial statements is used for financial analysis?
Fund Flow Statement
Balance Sheet
Income Statement
Both (b) and (c)
- Fund Flow Statement: This statement tracks the movement of funds within a company, highlighting sources and uses of funds. It's useful for understanding financial health but not typically the main focus for core financial analysis.
- Balance Sheet: Displays a company’s assets, liabilities, and equity at a specific point in time. It provides a snapshot of financial health, helping in assessing liquidity and capital structure.
- Income Statement: Also known as the profit and loss statement, it overviews revenues and expenses over a period. It’s key for evaluating performance and profitability.
- Both (b) and (c): Both Balance Sheet and Income Statement are extensively used for financial analysis. They offer crucial insights into a company’s financial position and performance.
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