Which of the following techniques is best suited to analyze the financial position of an organization?
A) process modeling
B) motion-study techniques
C) value analysis
D) functional analysis
E) ratio analysis

Question

Quizplus · Accepted Answer

Ratio analysis is the best technique to analyze the financial position of an organization as it involves the calculation and interpretation of various financial ratios like liquidity ratios, profitability ratios, and solvency ratios, which help in evaluating the financial health, performance, and stability of the organization. Other techniques like process modeling, motion-study techniques, value analysis, and functional analysis are more suited for analyzing operational and production-related aspects of an organization.

Which of the Following Techniques Is Best Suited to Analyze