Which of the following is an (are) objective(s) of ratio analysis?
A) Assessing past performance.
B) Assessing the prospects for future performance.
C) Analyzing how a company finances its operations.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Ratio analysis can be used to assess past performance, to predict future performance, and to analyze how a company finances its operations. Therefore, all of the answer choices are correct objectives of ratio analysis.

Which of the Following Is an (Are) Objective(s) of Ratio