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easyMCQCUET Accountancy 2025 30 May Shift 22026Accountancy
1 mark

Which among the following is NOT TRUE about the financial statement?

  1. A
    The financial statements of a business enterprise include cash flow statement
  2. B
    Common size statements and financial ratios are the two tools employed in vertical analysis.
  3. C
    Comparative statements are in the form of horizontal analysis.
  4. D
    Financial analysis is used only by the creditors.

Solution & Step-by-step Explanation

Financial analysis is highly valuable to both internal users (such as corporate management and employees) and a broad spectrum of external stakeholders (including investors, shareholders, regulatory agencies, tax authorities, and financial analysts), not just creditors. Thus, statement D is completely false.

Practice this question

Try it yourself before checking the explanation above.

Which among the following is NOT TRUE about the financial statement?
A
The financial statements of a business enterprise include cash flow statement
B
Common size statements and financial ratios are the two tools employed in vertical analysis.
C
Comparative statements are in the form of horizontal analysis.
D
Financial analysis is used only by the creditors.

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