Ratios provide a ________ measure of a company's performance and condition.
A) definitive
B) gross
C) relative
D) absolute

Question

Quizplus · Accepted Answer

Ratios provide a relative measure of a company's performance and condition as they compare different elements of a company's financial statements to give a better understanding of its financial situation. Ratios cannot provide a definitive or absolute measure as they are dependent on the context and industry norms, and are not a gross measurement.

Ratios Provide a ________ Measure of a Company's Performance and Condition