Question

Which of these are not the method of financial statement analysis

Answer 1

Answer:

statement of profit and loss

Answer 2

Answer:

Statement of Profit and Loss is not the method of financial statement analysis

Explanation:

• The profit or loss statement is not one of the four possibilities included in the question statement since it is essentially a financial statement also known as the income statement. It essentially summarises the expenses and income that have been incurred during a predetermined time period.
• The last three methods are essential instruments for analyzing financial statements.
• The three most commonly practiced methods of financial analysis are – horizontal analysis, vertical analysis, and ratio and trend analysis.

key elements of financial analysis:

• Revenues. Revenues are probably your business's main source of cash. ...Profits. ...
• Operational Efficiency. ...
• Capital Efficiency and Solvency. ...
• Liquidity.

hence Statement of Profit and Loss is not the method of financial statement analysis