Question

State any one objective of Financial Statement Analysis.

Solution

The most important objective of Financial Statement Analysis is to diagnose the information contained in financial statements so as to judge the profitability and financial soundness of the business. It provides better and easy understanding of the changes in the financial data over a period of time.

Some More Questions From Analysis of Financial Statements Chapter

Prepare a Comparative Income Statement from the following information.

2009 2010

Rs. Rs.

Sales 10,00,000 12,50,000
Cost of goods sold 5,00,000 6,50,000
Carriage inwards 30,000 50,000
Operating Expenses 50,000 60,0000
Income Tax 50% 50%

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Analysis Of Financial Statements

State any one objective of Financial Statement Analysis.

Some More Questions From Analysis of Financial Statements Chapter

Prepare a Comparative Income Statement from the following information.

2009 2010

Rs. Rs.

Sales 10,00,000 12,50,000
Cost of goods sold 5,00,000 6,50,000
Carriage inwards 30,000 50,000
Operating Expenses 50,000 60,0000
Income Tax 50% 50%

State the objectives of 'Analysis of Financial Statements'.

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

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For Daily Free Study Material Join wiredfaculty

Analysis Of Financial Statements

State any one objective of Financial Statement Analysis.

Some More Questions From Analysis of Financial Statements Chapter

Prepare a Comparative Income Statement from the following information. 2009 2010 Rs. Rs. Sales 10,00,000 12,50,000Cost of goods sold 5,00,000 6,50,000Carriage inwards 30,000 50,000Operating Expenses 50,000 60,0000Income Tax 50% 50%

State the objectives of 'Analysis of Financial Statements'.

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Prepare a Comparative Income Statement from the following information.

2009 2010

Rs. Rs.

Sales 10,00,000 12,50,000
Cost of goods sold 5,00,000 6,50,000
Carriage inwards 30,000 50,000
Operating Expenses 50,000 60,0000
Income Tax 50% 50%