Which of the Following Is an (Are) Objective(s) of Ratio

question 117

Multiple Choice

Which of the following is an (are) objective(s) of ratio analysis?

• A) Assessing past performance.
• B) Assessing the prospects for future performance.
• C) Analyzing how a company finances its operations.
• D) All of these answers are correct.

---

Definitions:

Utility Function

An economic model that quantifies the satisfaction or happiness a consumer receives from consuming goods and services.

Expected Utility

A theory in economics that models how agents choose among risky alternatives to maximize their satisfaction.

Income

Receipts garnered on a habitual basis as a result of engaging in work or investment.

Von Neumann-Morgenstern

A theory of expected utility which provides axioms for how rational individuals make decisions under uncertainty.