Relationships determined from a firm's financial information and used for comparison purposes are known as:
A)financial ratios.
B)identities.
C)dimensional analysis.
D)scenario analysis.
E)solvency analysis.

Question

Quizplus · Accepted Answer

Financial ratios are relationships determined from a firm's financial information and used for comparison purposes. They help analysts and investors assess a company's financial health and performance. Examples of common financial ratios include debt-to-equity ratio, price-to-earnings ratio, and return-on-investment ratio.

Relationships Determined from a Firm's Financial Information and Used for Comparison