The ________ is used by financial managers as a structure for dissecting a firm's financial statements to assess its financial condition.
A) statement of cash flows
B) DuPont system of analysis
C) break-even analysis
D) technical analysis

Question

Quizplus · Accepted Answer

The DuPont system of analysis is commonly used by financial managers as a framework for evaluating a company's financial statements. It breaks down the return on equity into three components - profitability, efficiency, and leverage - to provide a comprehensive understanding of a company's financial health. The statement of cash flows is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents. Break-even analysis is a tool used to determine the level of sales needed to cover fixed and variable costs. Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume.

The ________ Is Used by Financial Managers as a Structure