Which of the following is used by managers to interpret the numbers in financial statements?
A) depreciation ratios
B) asset analysis
C) operating ratios
D) ratio analysis

Question

Quizplus · Accepted Answer

Ratio analysis is a technique used by managers to interpret the numbers in financial statements. By comparing different financial ratios, such as liquidity ratios, solvency ratios, and activity ratios, managers can gain insights into the financial health and performance of their organization. Depreciation ratios and asset analysis may be used as part of ratio analysis, but they are not comprehensive enough on their own to interpret financial statements. Operating ratios are a type of ratio analysis that specifically focuses on the company's operational efficiency.

Which of the Following Is Used by Managers to Interpret