Ratio analysis is least likely to indicate:
A) past performance.
B) future performance.
C) the effects of inflation.
D) trends in a company's performance.

Question

Quizplus · Accepted Answer

Ratio analysis measures the relationship between financial statement items to evaluate a company's performance. It primarily indicates past and current performance and trends in a company's financial position. However, it does not directly indicate the effects of inflation or future performance.

Ratio Analysis Is Least Likely to Indicate