State the meaning of Analysis and Interpretation.
Analysis and Interpretation refers to a systematic and critical examination of
the financial statements. It not only establishes cause and e Tect relationship
among the various items of the financial statements but also presents the
financial data in a proper manner. The main purpose of Analysis and
Interpretation is to present the financial data in such a manner that is easily
understandable and self-explanatory. This not only helps the accounting users to
assess the fi nancial performance of the business over a period of time but also
enables them in decision making and policy and financial designing process.
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Analysis and Interpretation refers to a systematic and critical examination of
the financial statements. It not only establishes cause and e Tect relationship
among the various items of the financial statements but als...
Step-by-step explanation:
• Analysis and Interpretation refers to a systematic and critical examination of
• the financial statements
• It not only establishes cause and e Tect relationship
• among the various items of the financial statements but also presents the
• financial data in a proper manner
Students often lose marks by skipping steps, writing incomplete explanations, or misunderstanding keywords used in the question.
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