Which of the Following Is (Are)objective(s)of Ratio Analysis

question 148

Multiple Choice

Which of the following is (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 answer choices are correct.

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Definitions:

Income Statement

A financial statement that shows a company's revenue, expenses, and profits over a specific period of time.

Available-for-sale Securities

Financial assets that are neither held for trading nor intended to be held to maturity, and can be sold in response to needs for liquidity or changes in interest rates.

Trading

The act of buying, selling, or exchanging financial instruments, commodities, or other assets in financial markets or over-the-counter.

Maturity

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.