The measurement of key relations among financial statement items is known as:
A) Financial reporting.
B) Horizontal analysis.
C) Investment analysis.
D) Ratio analysis.
E) Risk analysis.

Question

Quizplus · Accepted Answer

Ratio analysis involves measuring the relationship between different financial statement items, such as current assets and current liabilities, to interpret the financial health of a company. Financial reporting refers to the act of producing and disclosing financial statements. Horizontal analysis involves comparing financial statement items over a period of time. Investment analysis involves evaluating the potential return and risk of an investment. Risk analysis involves assessing potential risks and their impact on a company's financial performance.

The Measurement of Key Relations Among Financial Statement Items Is