Ratios Are Used as Tools in Financial Analysis

question 36

Multiple Choice

Ratios are used as tools in financial analysis

• A) instead of horizontal and vertical analyses.
• B) because they may provide information that is not apparent from inspection of the individual components of the ratio.
• C) because even single ratios by themselves are quite meaningful.
• D) because they are prescribed by IFRS.

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Definitions:

Value Claiming

The process of negotiating to maximize one's own benefit from a deal or situation, often at the expense of others' interests.

Value Creating

The process of generating additional worth, utility, or benefits through innovative, entrepreneurial, or strategic activities.

Iterative Process

A method of achieving a desired outcome through repeated rounds of analysis or operations.

Loose Coalition

A temporary and informal alliance among various groups or individuals, often with less structure and organization than a formal coalition.