The measurement of key relations among financial statement items is known as:
A) Horizontal analysis.
B) Financial reporting.
C) Investment analysis.
D) Ratio analysis.
E) Risk analysis.

Question

Quizplus · Accepted Answer

Ratio analysis is a technique used to evaluate the relationship between different financial statement items to gain insights into the financial health of a company, its performance over time, and its future prospects. Some commonly used ratios in financial analysis include liquidity ratios, profitability ratios, efficiency ratios, and solvency ratios.

The Measurement of Key Relations Among Financial Statement Items Is