The Process of Making Forecasts Based on the Ratio Between

question 100

Multiple Choice

The process of making forecasts based on the ratio between some causal factor like sales volume and the number of employees required is called ________.

• A) ratio analysis
• B) trend analysis
• C) graphical analysis
• D) computer analysis

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Definitions:

Salary Allowances

Monetary benefits in addition to regular salary provided to employees, which may cover expenses such as housing, transportation, and medical expenses.

Partnership Net Income

The total profits earned by a partnership that are to be divided among partners in agreed-upon proportions.

Equity

The amount of funds contributed by owners (shareholders) plus the retained earnings (or losses), representing ownership interest in a firm.

Capital Balances

The amount of money that the partners or owners of a business have contributed or acquired through retained earnings.