Ratio analysis:
A)is required by GAAP as part of every company's income statement and balance sheet.
B)will always identify the best investment decision.
C)will tell you how a company will perform in the future.
D)allows you to evaluate how well a company has performed relative to other different-sized companies within the same industry.

Question

Quizplus · Accepted Answer

Ratio analyses are conducted to understand relationships among various items reported in one or more of the financial statements.Ratio analyses allow you to evaluate how well a company has performed given the level of other company resources.

Ratio Analysis