SELECT * FROM question_mgmt as q WHERE id=10419 AND status=1 SELECT id,question_no,question,chapter FROM question_mgmt as q WHERE courseId=3 AND subId=51 AND chapterId=360 and ex_no='1' AND status=1 ORDER BY CAST(question_no AS UNSIGNED) CBSE Free NCERT Solution of 12th accountancy-company-accounts-and-analysis-of-financial-statements Analysis of Financial Statement state the importance of financial analysis

Question:

State the importance of Financial Analysis?

Answer:

Financial Analysis has great importance to various accounting users on
various matters:

1. It helps in evaluating the profit earning capacity and financial feasibility of a business.

2. It helps in assessing the long-term solvency of the business.

53. Many business owners and company managers have found that insight gained from their examination of company financial statements can be invaluable. Such insight can help businesses improve their profitability, cash flow, and value.


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