How can the analysis of financial statements be carried out?

How can the analysis of financial statements be carried out?


There are two ways in which analysis of financial statements can be carried out:

- Internal Analysis indicates the analysis carried out by the management of the company to enable the decision making process. This analysis is carried out in the legal or statutory matters in which parties have the access to the books and records of the company. This is carried out in the legal or statutory matters.

- External Analysis indicates the analysis carried out by the creditors, prospective investors and other outsiders who do not have the access to the books and records of the company.
What techniques are used for the analysis and interpretation of financial statements?
The techniques used for the analysis and interpretation of financial statements are:…
Explain share capital & reserves and surpluses.
Share Capital is that portion of a company’s equity that has been obtained by issuing share to a shareholder….
Explain secured loans and unsecured loans.
Secured Loans are the loans which are secured wholly or partly against the assets of the company…
Post your comment