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

question 33

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 answers are correct.

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Definitions:

Income

The financial gain received by an individual or a business in exchange for providing a good or service or through investing capital.

Price

The amount of money required to purchase a good or service, determined by factors such as demand, supply, and production cost.

Law Of Demand

The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises

Price

The monetary value assigned to a product or service, determined by various factors including supply and demand, production cost, and market competition.