Which of the following involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance?
A) organizational performance appraisal
B) ratio analysis
C) performance analysis
D) financial reporting

Question

Quizplus · Accepted Answer

Ratio analysis involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance. Organizational performance appraisal involves assessing the performance of employees or the organization as a whole. Performance analysis is a broad term that can refer to various methods of analyzing performance, while financial reporting involves preparing financial statements for external users.

Which of the Following Involves Calculating and Interpreting Financial Ratios