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The Global Insight

Which one of the following item is not a tool of analysis of financial statements?

Author

Robert Miller

Updated on February 23, 2026

Explanation: Among the four options given in question statement, profit or loss statement is not a tool, it is basically a financial statement also known as the income statement.

Which of the following is not a tool or technique used by a financial statement analysis?

The correct answer to the given question is option b. Circular analysis. The horizontal analysis and vertical analysis methods are used to do a relative analysis of financial statements such as income statement and balance sheet.

Which of the following is not a part of financial analysis?

Trial balance is not part of financial statements.

Which one of the following is tool of financial analysis?

Commonly used tools of financial analysis are: Comparative statements, Common size statements, trend analysis, ratio analysis, funds flow analysis, and cash flow analysis.

Which of the following is the main objective of a financial statement?

The objective of financial reporting is to track, analyse and report your business income. The purpose of these reports is to examine resource usage, cash flow, business performance and the financial health of the business. This helps you and your investors make informed decisions about how to manage the business.

Which of the following is not required to be prepared under the Companies Act?

Which of the following is not required to be prepared under the companies act 1)balance sheet. 2)report of Directors and Auditors. 3)Funds flow statement. 4)Statement of profit and loss.

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