Most business plan writers interpret or make sense of a firm's historical and/or pro form financial statements through:
A) ratio analysis
B) assumptions analysis
C) scenario analysis
D) proportion analysis
E) relative analysis

Question

Quizplus · Accepted Answer

Ratio analysis is the most common method used by business plan writers to interpret a firm's historical and pro forma financial statements. This involves calculating financial ratios, such as liquidity ratios, profitability ratios, and solvency ratios, to provide insight into the company's financial health and performance. This allows the business plan writer to identify potential strengths and weaknesses within the firm and develop strategies to address them.

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