Relationships determined from a firm's financial information and used for comparison purposes are known as:
A) Financial ratios.
B) Comparison statements.
C) Dimensional analysis.
D) Scenario analysis.
E) Solvency analysis.

Question

Quizplus · Accepted Answer

Financial ratios are calculations derived from a firm's financial information, used to gain insight into its operations, liquidity, profitability, and solvency, making them essential tools for comparison and analysis.

Relationships Determined from a Firm's Financial Information and Used for Comparison