Financial statement and analysis

Below are all the components of financial statements except:

• Statement of comprehensive income

• Statement of financial position

• Statement of debt

• Statement of cash flow

Statement of comprehensive income is

• The statement of profit or loss for period which includes revenue and expenditure for the period.

• The statement of asset and liability that shows the performance of the firm for the period of time.

Employees is one of the users for the financial statement.

• False

• True

Below are all the types of ratio comparisons except:

• Historical analysis

• Demand analysis

• Budget analysis

• Competitive ratio

Historical analysis is

• It refer on the ratio compares from one period to another within the company.

• It refer to the actual performance compare with the firm projected performance.

Below are all the advantages of financial ratio except:

• Simplifies the comprehension of financial statements

• Help in planning and forecasting

• Adjusting cost of capital for different risk

• Help in investment decision

Liquidity ratio, debt management ratio, profitability ratio, assets management ratio and market value ratio are the group of financial ratio.

• True

• False

Competitive ratio is comparing ratio of the firm with the another firm within the same industry.

• True

• False