Which of the following is (are)objective(s)of ratio analysis?
A)Assessing past performance.
B)Assessing the prospects for future performance.
C)Analyzing how a company finances its operations.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these options are objective of ratio analysis. Ratio analysis is a tool used by businesses to evaluate their financial performance by comparing different financial items. It is used to assess past performance, current financial status, and to forecast future performance. Ratio analysis can also help businesses to analyze how they finance their operations, identifying areas where efficiency could be improved and helping to strengthen strategic decision making.

Which of the Following Is (Are)objective(s)of Ratio Analysis