A STUDY ON FINANCIAL STATEMENT ANALYSIS

Abstract

 Financial statement analysis is the process of identifying the financial strength and weakness of the firm and establishing relationship between the items of the balance sheet and profit and loss account. Financial statement refer to a package of statement such as balance sheet, income statement and fund flow statement, cash flow statement of retained earnings. The profit and loss account present a bird’s eye view of the operation for the enter period, while the balance sheet portrays the financial position at a point time when the accounting period comes to a close. Apart from profit and loss account and balance sheet, statement of retained earnings, schedule of fixed assets, schedule of debtors