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

Question

Quizplus · Accepted Answer

Ratio analysis is a commonly used tool for comparing data from different periods or competitors. It involves calculating and analyzing ratios such as return on investment, debt-to-equity ratio, and inventory turnover ratio to evaluate a company's financial performance. Current analysis focuses on present data and does not involve comparisons. Debt and inventory are specific types of ratios and do not encompass all types of comparisons.

Numbers Used to Compare Current Data to Data from Previous