Financial analysis is a mechanical and mathematical process of evaluating information reported in financial statements. True...
Financial analysis is a mechanical and mathematical process of evaluating information reported in financial statements.
True or False
Homework Answers
Answer:
False
Explanation:
Financial analysis is the process by which the stability, profitability and viability of a business or project is assessed. It is the process of examination in detail, of the critical information presented in the financial statements. It helps a business to determine it's strengths and weaknesses, and also provide assurance to stakeholders and other interested parties.
Financial analysis is not just a mechanical and mathematical process of evaluating information reported in financial statements. It includes analytical methods like external audit to obtain both qualitative and quantitative information.
So the answer is False.
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