Commonly used in accounting analysis, a ____ shows a relationship between two elements of a firm's financial statements.
A) statistic
B) comparative number
C) current ratio
D) financial ratio
E) formula

Question

Quizplus · Accepted Answer

Financial ratios are used in accounting analysis to show the relationships between different elements of a firm's financial statements, such as the relationship between a company's current assets and current liabilities (current ratio), or the relationship between a company's net income and the value of its common stock (price-to-earnings ratio). These ratios help analysts and investors evaluate a company's financial health and make informed decisions about investing in the company.

Commonly Used in Accounting Analysis, a ____ Shows a Relationship