The tools and techniques used to analyze financial statements are divided into broad categories including all the following except:
A) liquidity analysis
B) vertical analysis
C) horizontal analysis
D) ratio analysis

Question

Quizplus · Accepted Answer

Liquidity analysis, vertical analysis, and horizontal analysis are all specific types of financial statement analysis techniques. Ratio analysis is also a technique used in financial statement analysis, but it is not an exception among the options provided. Liquidity analysis is actually a part of financial analysis, focusing on a company's ability to cover its short-term obligations. Therefore, all options except for liquidity analysis are not exceptions; they are indeed broad categories of financial statement analysis techniques.

The Tools and Techniques Used to Analyze Financial Statements Are