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Concept of financial analysis

Updated: 12/16/2022
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concept of financial analysis?

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Q: Concept of financial analysis
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Hoe does the concept of consistency aid in the analysis of financial statement?

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How does concept of consistency aid in the analysis of financial statement?

In accountancy, the concept of consistency refers to using the same accounting methods each year. This ensures that the financial statements for each year can easily be compared with each other.


How does the concept of consistency aid in the analysis of financial statement?

In accountancy, the concept of consistency refers to using the same accounting methods each year. This ensures that the financial statements for each year can easily be compared with each other.


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Following are two kinds of financial analysis: 1 - Horizontal Analysis 2 - Vertical Analysis


What you can learn from financial analysis?

In financial analysis, you can determine the flow of the costs which are expressed mostly in percentages and/or ratios. Decision-making is highly dependent on financial analysis.


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