Analysis of financial statements-Quiz to test your knowledge!
In general, Financial statement analysis is as a process of understanding the risk and profitability of a company by analyzing reported financial info, like annual and quarterly reports.
Financial statements are formal records of the financial activities of a business, person, or other entity. They provide an overview of a business or person’s financial condition in both short and long term. They can give an accurate picture of a companyâs condition and operating results in a condensed form. Financial analysis is helpful in assessing the financial position and profitability of a organization.
For analysis, there are many like internal, external, long term etc which can be used as per requirement. At the same there are several kinds of ratios for analysis of different aspect of a company’s performance.
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