Financial technique that involves dividing various financial statement numbers into one another:
A) ratio analysis
B) cross-sectional analysis
C) industry comparative analysis
D) break-even analysis

Question

Quizplus · Accepted Answer

Ratio analysis involves dividing various financial statement numbers into one another to gain insight into a company's financial performance and health. Cross-sectional analysis involves comparing data from multiple companies within the same industry or sector, while industry comparative analysis involves comparing a company's financial performance to industry benchmarks. Break-even analysis is a technique for determining the level of sales at which a company will break even. Therefore, ratio analysis is the best choice for this question.

Financial Technique That Involves Dividing Various Financial Statement Numbers into One