Financial ratios are helpful in equalizing companies of different sizes for comparison of financial performance.

Name: Financial ratios are helpful in equalizing companies of different sizes for comparison of financial performance.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Financial ratios are calculated by dividing one financial metric by another to provide a standardized measure of financial performance. This allows for meaningful comparisons between companies, regardless of size or industry.

Financial Ratios Are Helpful in Equalizing Companies of Different Sizes