An evaluation of a company's financial statements in order to identify significant trends or relationships among the items is called a(n)_____ analysis.

Question

Quizplus · Accepted Answer

Financial statement analysis involves the evaluation of a company's financial statements (including its income statement, balance sheet, and cash flow statement) in order to determine its overall financial health and identify any significant trends or relationships among the items. This analysis is typically performed by investors, analysts, or other stakeholders who are interested in assessing a company's financial performance and making informed decisions about whether to invest in or do business with the company. Relative analysis, domestic analysis, management accounting, and accounting are not specific types of financial statement analysis.

An Evaluation of a Company's Financial Statements in Order to Identify