State and explain any 'four objectives' of analysis of financial state

1.	State and explain any 'four objectives' of analysis of financial statement from a business concern's point of view.
Answer» Objectives of Financials Statement Analysis : (i) Financial Statement Analysis help to pinpoint the areas wherein the managers have shown efficiency and the areas of inefficiencies. (ii) On the basis of Financial Statement Analysis, the solvency of the concern may be judged. (iii) Past Financial Statement Analysis help a great deal in assessing developments in future, specially the next years. (iv) Analysis of Financial Statement helps in judging the efficiencies as well as inefficiencies of the business.

State and explain any 'four objectives' of analysis of financial statement from a business concern's point of view.

Answer»

Objectives of Financials Statement Analysis :

(i) Financial Statement Analysis help to pinpoint the areas wherein the managers have shown efficiency and the areas of inefficiencies.

(ii) On the basis of Financial Statement Analysis, the solvency of the concern may be judged.

(iii) Past Financial Statement Analysis help a great deal in assessing developments in future, specially the next years.

(iv) Analysis of Financial Statement helps in judging the efficiencies as well as inefficiencies of the business.

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