Financial Statements Question:
Explain how can the analysis of financial statements be carried out?
Answer:
There are two ways in which analysis of financial statements can be carried out:
- Internal Analysis indicates the analysis carried out by the management of the company to enable the decision making process. This analysis is carried out in the legal or statutory matters in which parties have the access to the books and records of the company. This is carried out in the legal or statutory matters.
- External Analysis indicates the analysis carried out by the creditors, prospective investors and other outsiders who do not have the access to the books and records of the company.
- Internal Analysis indicates the analysis carried out by the management of the company to enable the decision making process. This analysis is carried out in the legal or statutory matters in which parties have the access to the books and records of the company. This is carried out in the legal or statutory matters.
- External Analysis indicates the analysis carried out by the creditors, prospective investors and other outsiders who do not have the access to the books and records of the company.
| Previous Question | Next Question |
| Tell me what techniques are used for the analysis and interpretation of financial statements? | Do you know Balance Sheet? |