Question

Give one word/term/ phrase for each of the following statements :

Critical evaluation of financial statement to measure profitability.

Answer 1

Analysis of financial statement

Explanation: It is the process of analysing the business results and the efficiency of the business via various tools. Analysis of financial statement provides an insight into the efficiency with which a business is operating, what is the profitability and what is the present financial position of the business. It facilitates comparison of business results of different firms and over the years.