Financial ratios can be used to assess which of the following aspects of a firm's performance?
A)Liquidity
B)Solvency
C)Profitability
D)All of the other answers are correct.

Question

Quizplus · Accepted Answer

Ratio analysis involves studying various relationships between different items reported in a set of financial statements. For example, net earnings (net income) reported on the income statement may be compared to total assets reported on the balance sheet. Analysts calculate many different ratios for a wide variety of purposes including assessment of liquidity, solvency and profitability.

Financial Ratios Can Be Used to Assess Which of the Following