Identify Three Potential Users of Financial Ratios,and Explain the User's

question 50

Essay

Identify three potential users of financial ratios,and explain the user's focus.

---

Definitions:

Asset Turnover

A metric that evaluates how effectively a company utilizes its assets to produce sales income.

Intangible Asset

An asset that lacks physical substance but provides economic benefits to a business, such as trademarks or patents.

Commercial Substance

A consideration in accounting that a transaction has significantly changed the economic circumstances of the participants.

Gain or Loss

The difference between the sale price of an asset and its original purchase price, indicating the financial outcome of a transaction.