abhishreshthaa
Abhijeet S
FINANCIAL ANALYSIS
Meaning of Financial Analysis:
Analysis of the financial statement is the process of identifying the financial strength and weakness of the firm by properly establishing the relationship between the items of balance sheet and income statement.
An adequate understanding and analysis of financial statement can be achieved only if the analyst:
(a) Understands the nature and limitations of accounting
(b) Understanding the terminology of accounting business
(c) Has some knowledge of the business and
(d) Is adequate with the nature and tools of financial analysis.
Meaning of Financial Analysis:
Analysis of the financial statement is the process of identifying the financial strength and weakness of the firm by properly establishing the relationship between the items of balance sheet and income statement.
An adequate understanding and analysis of financial statement can be achieved only if the analyst:
(a) Understands the nature and limitations of accounting
(b) Understanding the terminology of accounting business
(c) Has some knowledge of the business and
(d) Is adequate with the nature and tools of financial analysis.