Question:
_______ is not a tool of ‘Analysis of Financial Statements’.
_______ is not a tool of ‘Analysis of Financial Statements’.
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Tools of analysis include techniques and statements used to interpret financial results, not the reports themselves.
Updated On: Feb 9, 2026
- Income Statement
- Ratio Analysis
- Comparative Statements
- Cash Flow Statement
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The Correct Option is B
Solution and Explanation
Analysis of Financial Statements involves evaluating a firm’s financial data using tools like Comparative Statements, Common Size Statements, Cash Flow Statement, and Ratio Analysis. The Income Statement is a component of the financial statements, not a tool for analyzing them. Hence, it is not considered an analytical tool in itself.
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