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:

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Information given to individuals or teams about their work performance, aiming to reinforce strengths and address weaknesses.

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Documents or updates that communicate the development, advancement, or status of a project or task over a certain period.

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The distribution of specific duties or jobs to individuals or teams within an organization or project.