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TYPES OF FINANCIAL ANALYSIS
a) According to the material used, the study can be -
i) External analysis: Where analysis is done by exterior interested parties and
ii) Internal analysis: Where study is done by inner parties
b) According to the modus operandi of the study, the study can be -
i) Horizontal analysis: Where every single item in the declaration is analyzed over a numeral of years, so that its trend is known and
ii) Vertical analysis: Where a variety of items in a exact year's statement are analyzed so that inter relationships are understood.
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i dont undrstnd t concepts of assets and liabilties n also journal entries thnks
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