Question

Financial Statement Analysis

Identify the tools used for Financial Statement Analysis

               Horizontal Trend Analysis

               Vertical Common Size Analysis

               Ratio Analysis   

                              Performance

                              Liquidity

                              Solvency

Identify the comparison and use of the tools above

               Intra Company

               Inter company

               Industry

Answer 1

Statement analysis : Tools used for financial 1. Horizontal Analysis. â. vertical Analysis. 3. Ratio Anolyes. " Horizontal Analysis : It is also known as evaluates a series of financial period of time. trend analyses statement data And it over a 2. vertical Analysis :- It evaluates financial Statement data expressing each item in a financial Statement as a percent of a base amount. 3. Ratio Analysis : It is used Solvency of an relationship among Statement data. to calculate the performance, liguidity organisation. It expresses the selected items of financial

= comparison and use of the tools above: 1. Horizontal Analysis : It is used primarily in Entra company comparisons Financial Statements facilitate this type of comparison because: a. Each of the basic financial Statements shows a minimum of a years b. Summary of selected data will show 5-10 years (68) more 2. vertical Analysis: It is comparisons used in both intra is inter company 3. Ratio Analysis in It is used in all three re, Intra, Inter and Industry. types of comparisons.
Given question is related to tools used for financial statement analysis in different methods and thier comparisons in different companies.

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