Three common tools of financial analysis are horizontal analysis, vertical analysis, ratio analysis. (Option B).
Financial analysis is used to assess the viability, stability, and profitability of a project, subbusiness, or company. This work is done by experts who create reports using ratios and other approaches, taking information from financial statements and other reports.
Finding out whether a company is reliable, solvent, liquid, or successful enough to warrant a financial investment is the ultimate goal of financial analysis. It is used to determine monetary policy, long-term corporate activity plans, analyze financial trends, pick investments in projects or businesses, and build long-term corporate activity plans.
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