The cornerstone of financial statement analysis is the use of ratios.

Question

Quizplus · Accepted Answer

Ratios are used to analyze and interpret financial statements by measuring the relationship between different numbers on the financial statements, such as revenue to expenses, assets to liabilities, and profits to sales. These ratios are key tools for financial statement analysis and help investors, creditors, and other stakeholders make informed decisions about a company's financial health and performance.

The Cornerstone of Financial Statement Analysis Is the Use of Ratios