n NISM Certifications
XXI NISM Series XXI-A
Medium

What is the primary purpose of "Financial Statement Analysis"?

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To determine the company's stock price

  2. To evaluate the company's financial health and performance

    Correct answer

  3. C

    To set the company's dividend policy

  4. D

    To decide the company's management structure

Why this is the answer

Financial analysis helps assess profitability, liquidity, and solvency.

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