Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › In financial analysis, interpretation refers to …
In financial analysis, interpretation refers to which activity?
AGrouping items into classes
BCalculating annual depreciation
CRecording journal entries daily
DExplaining what data signifies
Answer & Solution
Correct answer: D. Explaining what data signifies
Interpretation gives meaning to the classified figures, so it complements the earlier grouping step.
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