www.york.edu.au | into @york.coYOYorkKRBusinessInstituteAssessment Task 1: Knowledge TestProvide your response to each question in the box below.Q1:Answer the following questions:1.1. Explain the process to establish and review profits and losses from financial statements.Write your answer in 150-200 words.1.2. Why it is important to review profits and losses from financial statements? Answer in 150-200 words1.3. Explain the following processes/methods of analysing financial statements in 150-200words.a) Vertical Analysisb) Horizontal AnalysisC)Ratio Analysisd) Trend Analysis