Numbers used to compare current data to data from previous years,competitors' data,or industry averages is called ________ analysis.
A) ratio
B) current
C) debt
D) inventory
E) equity

Question

Quizplus · Accepted Answer

Ratio analysis involves comparing financial data between different periods, companies or industries to identify trends, strengths, and weaknesses. It enables businesses to evaluate their performance, identify areas for improvement, and make informed decisions. Current, debt, inventory, and equity analysis are more specific types of financial analysis and do not necessarily involve comparisons with external data sources.

Numbers Used to Compare Current Data to Data from Previous