Question

State and explain any 'four objectives' of analysis of financial statement from a business concern's point of view.

Answer 1

The 4 objectives of analysis of financial statement from a business concern's point of view are:-

1) Assessment of past performance and current position of the company.

2) Assessment of net income and growth prospects.

3) Prediction of bankruptcy or failure.

4) Helps in getting loans from bank and financial institutions.