Q.Do you agree or disagree with the following statement:
Financial statement includes only balance sheet.

Analysis of financial statements is the process of critically examining a firm's Trading and Profit & Loss Account and Balance Sheet, breaking the figures down, comparing them, and establishing relationships between them, to judge its profitability, liquidity, solvency and overall financial health. Its chief objectives are to assess earning capacity, judge short-term and long-term financial soundness, evaluate managerial efficiency, and provide a sound basis for planning and decision-making. A wide range of parties rely on this analysis for different reasons — owners/shareholders to judge the safety and return on their investment, management to plan and control operations, banks and creditors to assess creditworthiness, prospective investors to decide whether to invest, employees to assess job security, and governmen …