Question

list out the Tools Of Financial analysis

​for 2 marks.... plzz help friends

Answer 1

Answer:

• Comparative Statement or Comparative Financial and Operating Statements.
• Common Size Statements.
• Trend Ratios or Trend Analysis.
• Average Analysis.
• Statement of Changes in Working Capital.
• Fund Flow Analysis.
• Cash Flow Analysis.
• Ratio Analysis.

Answer 2

Tools of financial analysis are :-

1. Comparative statements

• Comparative statements or comparative financial statements mean a comparative study of individual components or elements or items of balance shaat and statements of profit and loss of two or more years.

2. Common size statements:-

• Common size statements or common size financial statements are statements in which individual components or elements or items of financial statements of two or more years are placed and then converted into percentages taking a common base.

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