Financial ratio analysis is most often performed as a
A)comparative analysis
B)trend analysis
C)point in time analysis
D)comparative analysis and a trend analysis

Question

Quizplus · Accepted Answer

Financial ratio analysis is typically used as both a comparative analysis (where a company's ratios are compared to similar companies in the industry) and a trend analysis (where a company's ratios are analyzed over time to identify changes and patterns). Therefore, the best answer is D - comparative analysis and trend analysis.

Financial Ratio Analysis Is Most Often Performed as a