Asked by Yessenia Castro on Jun 16, 2024

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Three of the most common tools of financial analysis are:

A) Financial reporting,sensitivity analysis,transactional analysis.
B) Fair presentation,variance analysis,financial reporting.
C) Horizontal analysis,vertical analysis,ratio analysis.
D) Relativity analysis,financial reporting,fair value analysis.
E) Liquidation analysis,political analysis,fair value analysis.

Financial Analysis

The evaluation of a company's financial statements and other financial information to assess its performance, stability, profitability, and liquidity.

Sensitivity Analysis

A technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.

Variance Analysis

The process of examining differences between planned financial outcomes and actual financial performance.

  • Master the utilization of tools and techniques for financial analysis, covering ratio, horizontal, and vertical analysis.
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CC
Christy ChrisJun 17, 2024
Final Answer :
C
Explanation :
Horizontal analysis compares financial data over a period of time, vertical analysis looks at the proportion of different items in a financial statement, and ratio analysis uses ratios to analyze the financial performance of a company. These three tools are commonly used in financial analysis. The other options listed are either not tools commonly used in financial analysis or are not correct phrases (such as "relativity analysis").