Financial ratios provide all of the following EXCEPT:
A)A framework for historical comparisons
B)A framework for external benchmarking
C)A means to set financial targets
D)A means to track financial goals
E)A calculation of the point at which sales revenues are sufficient to cover costs

Question

Quizplus · Accepted Answer

Financial ratios do not directly provide a calculation of the point at which sales revenues are sufficient to cover costs. This would fall under the realm of cost-volume-profit analysis. However, financial ratios can provide information that is useful for conducting cost-volume-profit analysis.

Financial Ratios Provide All of the Following EXCEPT