In using accounting ratios to appraise a firm's performance,it is helpful to use:
A)Benchmarks
B)Trends in these ratios over the past 5 years or more
C)Multiple indicators
D)All of the above

Question

Quizplus · Accepted Answer

It is best to use all of the above options when using accounting ratios to appraise a firm's performance. Benchmarks provide a point of comparison, trends in these ratios over time give insight into the company's progress, and multiple indicators offer a more complete picture of the firm's overall performance. Using all three options together will give a well-rounded analysis of the company's financial health.

In Using Accounting Ratios to Appraise a Firm's Performance,it Is