Most business plan writers interpret or make sense of a firm's historical and/or pro forma financial statements through ________ analysis.

Question

Quizplus · Accepted Answer

Ratio analysis is the process of analyzing financial statements by calculating and interpreting financial ratios to evaluate a company's financial performance and its financial health. It helps to identify financial strengths and weaknesses, assess risk, and make informed management decisions. Therefore, it is the most suitable method to interpret or make sense of a firm's historical and/or pro forma financial statements in a business plan.

Most Business Plan Writers Interpret or Make Sense of a Firm's