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415, deevith Publications, Others like economists and researchers analyse the financial statements to study the present business and, economic conditions. The government agencies need it for price regulations, taxation and other similar, (Write any two points), purposes., State any one importance of financial statement analysis. (March 2020), 1 Mark, State any two users of financial statement analysis., 2 marks, Ans: (1) Management, (2) Owners, (3) Trade creditors (Trade payables), (4) Lenders, (5) Labour unions, (6) Economists, (7) Researchers, (8) Government Agencies, 8 State any one user of financial statement analysis., 1 Mark, Ans: Write any one point of Q. 7 above., 4.3 Objectives of Financial Statement Analysis, 9. *State any two objectives of financial statement analysis. (June 2019), 2 Marks, Ans: Objectives of financial statement analysis, (1) to assess the current profitability and operational efficiency of the firm as a whole as well as its different, departments so as to judge the financial health of the firm., (2) to ascertain the relative importance of different components of the financial position of the firm., (3) to identify the reasons for change in the profitability / financial position of the firm., (4) to judge the ability of the firm to repay its debt and assessing the short-term as well as the long term, liquidity position of the firm., (Write any two points), 10. State any one objective of financial statement analysis., 1 Mark, Ans: Write any one point of Q. 9 above., 4.4 Tools of Analysis of Financial Statements, 11. *List any two techniques (i.e., tools) of financial statement analysis. (March 2019, June 2019) 2 Marks, Ans: Tools (or techniques) of financial statement analysis:, (1) Comparative statements, (2) Common size statements, (3) Trend analysis, (4) Ratio analysis, (5) Cash flow analysis, (Write any two points), 12. State any one technique of financial statement analysis., 1 Mark, Ans: Write any one point of Q. 11 above., II PU Accountancy, Student's illuminator