Identify a True Statement About Ratio Analysis

question 10

Multiple Choice

Identify a true statement about ratio analysis.

• A)Entrepreneurs must evaluate their firms on all ratio analysis figures to gain a proper understanding of their firms' operational health.
• B)A ratio analysis only provides insight into a firm's health when compared over time or to the ratios of other firms.
• C)While they are valuable tools, ratio analysis is ultimately less useful than nonfinancial data analysis methods.
• D)Because of the large amounts of financial data it requires, a ratio analysis cannot be performed by relatively new entrepreneurial firms.

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Definitions:

Geographic Location

The specific physical position or area where something exists or occurs, often defined in terms of latitude and longitude.