Relationships determined from a firm's financial information and used for comparison purposes are known as:
A)scenario analysis.
B)solvency analysis.
C)dimensional analysis.
D)financial ratios.
E)comparison statements.

Question

Quizplus · Accepted Answer

Financial ratios are used to determine a firm's relationships from its financial information and used for comparison purposes. They provide insight into a firm's financial health, performance, and stability. Other options like scenario analysis, solvency analysis, dimensional analysis, and comparison statements are not specific terms used for financial analysis and don't refer to the use of financial ratios.

Relationships Determined from a Firm's Financial Information and Used for Comparison