To determine the financial condition of an existing business,it is necessary to compare ____ with ____ to identify where costs can be reduced or more money is needed.
A) Operating ratios; fiscal averages
B) Operating ratios; industry averages
C) Expense ratios; fiscal averages
D) Expense ratios; industry averages

Question

Quizplus · Accepted Answer

Operating ratios are used to compare a company's financial performance to industry averages. This can help identify areas where costs can be reduced or more money is needed.

To Determine the Financial Condition of an Existing Business,it Is