ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The three main sources of data for financial analysis are a company’s balance sheet, income statement, and cash flow statement.

Detailed explanation-2: -a. Financial statements gives a summary of accounts.

Detailed explanation-3: -There are five commonplace approaches to financial statement analysis: horizontal analysis, vertical analysis, ratio analysis, trend analysis and cost-volume profit analysis. Each technique allows the building of a more detailed and nuanced financial profile.

Detailed explanation-4: -Financial statement analysis evaluates a company’s performance or value through a company’s balance sheet, income statement, or statement of cash flows. By using a number of techniques, such as horizontal, vertical, or ratio analysis, investors may develop a more nuanced picture of a company’s financial profile.