Which of the following helps analysts understand the relationship between two financial statement items?
A)common-sized financial statements
B)performance analysis
C)ratio analysis
D)trend analysis

Question

Quizplus · Accepted Answer

Ratio analysis is a method used by analysts to understand the relationship between two financial statement items. It involves calculating various ratios such as liquidity ratios, profitability ratios, and solvency ratios to evaluate a company's financial performance and position. Common-sized financial statements, performance analysis, and trend analysis do provide insight into financial statement items, but they do not specifically focus on understanding the relationship between them.

Which of the Following Helps Analysts Understand the Relationship Between