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What do you mean by analysis and interpretation |
Answer» Analysis and interpretation of financial statements means looking at the various parts of the financial statements, relating the parts to each other and to the picture as a whole, and determining if any meaningful and useful interpretation can be made. Analysis refers to the process of fact-finding and breaking down a complex set of figures into simple components while interpretation stands for explaining the real significance of those simplified components. Thus, an analysis is a pre-requisite to the interpretation. | |