Financial analysis is more meaningful if the ratios can be compared to an appropriate benchmark such as:
A) industry averages.
B) economic industry sector.
C) changes over time.
D) all of the options are appropriate benchmarks.

Question

Quizplus · Accepted Answer

Financial analysis is more meaningful if the ratios can be compared to multiple benchmarks like industry averages, economic industry sector, and changes over time. Comparing financial ratios to these benchmarks provides insight into how well the company is performing and where it stands compared to its competitors and the overall industry. Hence, all options are appropriate benchmarks.

Financial Analysis Is More Meaningful If the Ratios Can Be