Question : Which of the following statements is correct?
Option 1: Past financial statement analysis helps in assessing developments in future, especially in the next year.
Option 2: Financial analysis helps the users of the financial statements to understand the complicated matter in a simplified manner.
Option 3: On the basis of financial analysis we can take a variety of decisions in various areas such as securities analysis, credit analysis, debt analysis, dividend decision and general business analysis.
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
1. Past financial statement analysis helps in assessing developments in future, especially in the next year.
2. Financial analysis helps the users of the financial statements to understand the complicated matter in a simplified manner.
3. On the basis of financial analysis we can make a variety of decisions in various areas such as securities analysis, credit analysis, debt analysis, dividend decision and general business analysis.
Hence, the correct option is 4.
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