Question : Choose which of the following statements is not true.
Option 1: There may be variations in accounting practices followed by different firms, a meaningful comparison of their financial statements is not possible.
Option 2: Window dressing refers to the presentation of a better financial position than what it actually is by manipulating the books of account.
Option 3: Financial analysis does not identify symptoms of the problems.
Option 4: All of the above
Correct Answer: Financial analysis does not identify symptoms of the problems.
Solution : Answer = Financial analysis does not identify symptoms of the problems
Although financial analysis can spot problems, it cannot diagnose them; instead, management must find a solution to address the symptoms.
Hence, the correct option is 3.
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