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:

Held-To-Maturity Investment

An investment in debt securities that a company has the intent and ability to hold until maturity.

Market Yield

The annual income return on an investment, expressed as a percentage of the market price of the investment.

Unrealized Gains

Profits from investments that have increased in value but have not been sold, and therefore are not yet considered income.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, reflecting the value of the company’s brand, customer relationships, and other factors.