Relationships between financial statement amounts are called

Question

Quizplus · Accepted Answer

Relationships between financial statement amounts are commonly referred to as financial ratios. Financial ratios provide insight into a company's performance and financial health by comparing different financial statement amounts with one another. Examples of financial ratios include the current ratio, return on equity, and debt-to-equity ratio. Option A is incorrect as financial statement analyses is a broader term that encompasses various analyses, one of which is financial ratio analysis. Option C refers specifically to a subset of financial ratios that measure a company's ability to meet its short-term obligations. Option D refers to a specific set of financial ratios developed by DuPont that analyze a company's return on equity.

Relationships Between Financial Statement Amounts Are Called