Place the key steps in financial ratio analysis in order of occurrence.
i)Select the ratios considered appropriate and carry out the calculations.
Ii)Interpret and evaluate what the ratios reveal.
Iii)Identify the users and their information needs.
A)ii, i, iii.
B)iii, ii, i.
C)iii, i, ii.
D)i, ii, iii.

Question

Place the key steps in financial ratio analysis in order of occurrence. 
i)Select the ratios considered appropriate and carry out the calculations.
Ii)Interpret and evaluate what the ratios reveal.
Iii)Identify the users and their information needs.
A)ii, i, iii.
B)iii, ii, i.
C)iii, i, ii.
D)i, ii, iii.

Quizplus · Accepted Answer

The first step in financial ratio analysis is to identify the users and their information needs. Once the users and their needs are identified, appropriate ratios can be selected and calculated. Finally, the ratios can be interpreted and evaluated to gain insights into the financial health of the organization. Therefore, the correct order of steps is iii, i, ii.

Place the Key Steps in Financial Ratio Analysis in Order