Various techniques are used in the analysis of financial data to emphasize the comparative and relative importance of the data presented and to evaluate the position of the firm.Which of the following is not one of the techniques used in analysis?
A)Ratio analysis
B)Common-size analysis
C)Theory consistency
D)Examination of relative size among firms
E)Review of descriptive material

Question

Quizplus · Accepted Answer

While theory consistency is a factor to consider in financial analysis, it is not a specific technique used to analyze financial data. The other options (ratio analysis, common-size analysis, examination of relative size among firms, and review of descriptive material) are all commonly used techniques in financial analysis.

Various Techniques Are Used in the Analysis of Financial Data