Relationships determined from a ﬁrm's ﬁnancial information and used for comparison purposes are known as:
A) Financial ratios.
B) Comparison statements.
C) Dimensional analysis.
D) Scenario analysis.
E) Solvency analysis.

Question

Quizplus · Accepted Answer

Financial ratios are relationships determined from a firm's financial information used for comparison purposes. They are used to evaluate a company's performance, financial stability, and liquidity. Other options such as scenario analysis and solvency analysis are specific types of financial analysis methods, while dimensional analysis is a mathematical concept unrelated to finance. Comparison statements are not a commonly used term in financial analysis.

Relationships Determined from a ﬁRm's ﬁNancial Information and Used for Comparison