You can create ________ from your income statement that will help you analyze your business further.
A) financial ratios
B) asset categories
C) comparisons
D) None of the above.

Question

Quizplus · Accepted Answer

Financial ratios can be calculated from the income statement to provide further insight into the financial health and performance of a business. These ratios can include profitability ratios, such as gross profit margin and net profit margin, and efficiency ratios, such as return on assets and return on equity. By analyzing these ratios, businesses can identify areas for improvement and make better-informed decisions. Option B (asset categories) and Option C (comparisons) may also be helpful in analyzing a business, but financial ratios are the most direct and informative option derived from the income statement.

You Can Create ________ from Your Income Statement That Will