9(a) Q. What do you mean by Financial Statement Analysis (AFS November 2016)? Do you think that financial statement analysis is an integral part of business analysis(AFS November 2016)?
Financial Statement Analysis:
Financial Statement Analysis:
The financial statements of a company are one of the richest sources of
information about a company. Financial statement analysis is a collection of
analytical processes that are an important part of overall business analysis. These
processes are applied to the financial statement information to produce useful
information for decision making. The objective of financial statement analysis
is to use the information provided in the statements to produce quantified
information to support the ultimate equity, credit, or other decision of
interest to the analyst.
Yes, Business analysis is the evaluation of a company’s prospects and risks
for business decisions. Financial statements are the most comprehensive source
of information about a company. As a result, financial statement analysis is an
integral part of business analysis.
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