Percentage analyses, ratios, turnovers, and other measures of financial position and operating results are
A) a substitute for sound judgment
B) useful analytical measures
C) enough information for analysis; industry information is not needed
D) unnecessary for analysis if industry information is available

Question

Quizplus · Accepted Answer

Percentage analyses, ratios, turnovers, and other measures of financial position and operating results are useful analytical measures that can help in evaluating the financial health of a company. However, they should not be used as a substitute for sound judgment. Additionally, industry information is also important to consider for a comprehensive analysis of a company's financial performance.

Percentage Analyses, Ratios, Turnovers, and Other Measures of Financial Position