Question

Financial statement analysis involves all of the following except:

Multiple Choice

The application of analytical tools to general-purpose financial statements and related data for making business decisions.

Transforming accounting data into useful information for decision-making.

Helping users to make better decisions.

Helping to reduce uncertainty in decision-making.

Assuring that the company will be more profitable in the future.

Answer 1

Answer:

The correct answer is does not assure the company that it will be more profitable in the future.

Explanation:

Financial statements is the one of the most important statements for the company which is prepared or made by the management of the company, it represents the financial position and the performance for a particular period.

It involves the income statements, statement of cash flows, balance sheet and statement of owner's equity.

It analysis the profit, transform the data so that can be used in decision making. But does not assure the company that it will be more profitable in the future.