Question : Which of the following statements is incorrect?
Option 1: Inter-firm comparison becomes easy with the help of financial analysis
Option 2: Past financial statement analysis helps in assessing developments in future, especially in the next year
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: None of the above
Solution : Answer = None of the above
Both statements are correct. Inter-firm comparison is facilitated by financial analysis, allowing for benchmarking against industry standards. Additionally, past financial statement analysis aids in forecasting future trends, providing insights into potential developments, making options clearer, and guiding decision-making. Therefore, the correct answer is "None of the above."
Hence, the correct option is 4.
