All of the following are steps of a financial statement analysis except:
A)Establish objectives of the analysis.
B)Prepare pro forma statements.
C)Study the industry in which the firm operates.
D)Develop knowledge of the firm and the quality of management.

Question

Quizplus · Accepted Answer

Preparing pro forma statements is not a step of financial statement analysis. The other three steps are crucial in understanding a firm's financial health and making investment decisions. Establishing objectives helps focus the analysis, studying the industry enables comparison to peers, and developing knowledge of the firm and management is important in evaluating its ability to generate profits and sustain growth.

All of the Following Are Steps of a Financial Statement