Financial statement analysis involves all of the following except:
A)The application of analytical tools to general-purpose financial statements and related data for making business decisions.
B)Transforming accounting data into useful information for decision-making.
C)Helping users to make better decisions.
D)Helping to reduce uncertainty in decision-making.
E)Assuring that the company will be more profitable in the future.

Question

Quizplus · Accepted Answer

Financial statement analysis cannot assure that the company will be more profitable in the future as it depends on various external factors and market conditions. The main objective of financial statement analysis is to provide useful information to stakeholders for making informed decisions.

Financial Statement Analysis Involves All of the Following Except