Financial ratios are used for all of the following purposes except:
A) by taxation authorities to determine the amount of tax payable.
B) by shareholders to assess profitability.
C) by creditors to monitor liquidity.
D) by management for planning and control.

Question

Quizplus · Accepted Answer

Financial ratios are not used by taxation authorities to determine the amount of tax payable. They may use financial statements to ensure accurate reporting of income and expenses, but ratios are not typically part of their analysis.

Financial Ratios Are Used for All of the Following Purposes