Which is true? Ratio analysis
A)can provide useful information on a firm's current position but should never be used to forecast future performance.
B)can provide useful information on a firm's current position and hint at future performance.
C)can provide useful information on a firm's past but not current position.
D)can provide useful information on a firm's past and current position, but should never be used to forecast future performance.

Question

Quizplus · Accepted Answer

Ratio analysis can provide insights into a firm's current position by examining its financial statements, and these ratios can also provide indications of future performance. While they cannot predict the future with certainty, ratio analysis can give a sense of a company's financial health and potential for growth or decline.

Which Is True? Ratio Analysis