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Question
Financial analysis is significant because it ______.
Options
ignores qualitative aspect
suffers from the weaknesses of financial statements
judges operational efficiency
Facilitates intra firm comparison
MCQ
Fill in the Blanks
Solution
Financial analysis is significant because it facilitates intra firm comparison.
Explanation:
Intra-firm comparison is a strength of the financial statement since it allows you to compare the company's financial status not only to previous years, but also to competitors'.
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Significance of Analysis of Financial Statements
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