The relationship of a number on the financial statements to another number is called a _____.

Question

Quizplus · Accepted Answer

The term used to describe the relationship of a number on the financial statements to another number is a financial ratio. Financial ratios are used to analyze a company's financial performance and position by comparing different numbers on the financial statements. Examples of financial ratios include debt-to-equity ratio, profit margin ratio, and return on assets ratio. The other answer choices (B, C, D, and E) are not relevant or accurate in describing this relationship.

The Relationship of a Number on the Financial Statements to Another