Home › CUET UG › accountancy › Analysis of Financial Statements › In financial analysis, the term 'analysis' refer…
In financial analysis, the term 'analysis' refers to:
Aauditing the accounts
Bthe methodical simplification and classification of data
Cexplaining the meaning of the data
Dforecasting future profits
Answer & Solution
Correct answer: B. the methodical simplification and classification of data
Analysis is the methodical simplification and classification of financial data; interpretation is its complement.
Related questions
Debt-Equity Ratio is calculated asIf Net Profit is Rs 50,000 on Sales of Rs 5,00,000, Net Profit Ratio isQuick (Acid Test) Ratio EXCLUDES which item from current assets?Current Ratio is calculated asIn a common size statement of profit and loss, the various items are usually expressed as Financial statement analysis is best described as a:Government agencies and economists use financial statement analysis mainly for:Horizontal analysis is so named because it: