The calculation of ratios from financial data is referred to as
A) SWOT analysis.
B) ratio analysis.
C) receivables analysis.
D) integration analysis.
E) diversification analysis.

Question

Quizplus · Accepted Answer

Ratio analysis is the process of calculating financial ratios from financial statements to evaluate a company's financial performance and overall health. SWOT analysis is a separate analysis that evaluates a company's strengths, weaknesses, opportunities, and threats. Receivables analysis is a specific type of ratio analysis focused on a company's ability to collect its outstanding receivables. Integration analysis and diversification analysis are not relevant to the calculation of ratios from financial data.

The Calculation of Ratios from Financial Data Is Referred to as