Question : Long-term and short-term solvency of an enterprise can be assessed on the basis of ___________.
Option 1: Financial statement analysis
Option 2: Inter-firm Comparison
Option 3: cross-sectional analysis
Option 4: None of the above
Answer (1)
20th Jan, 2024
Correct Answer: Financial statement analysis
Solution : Answer = Financial statement analysis
The process of identifying an organization's financial strengths and weaknesses via the appropriate charting of the links between various balance sheet elements and the profit and loss statement is known as financial analysis.
Hence, the correct option is 1.
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