Which of the Following Are Considered in the Ratio Analysis

question 126

Multiple Choice

Which of the following are considered in the ratio analysis of a firm?
I. profitability
II. market share
III. liquidity
IV. leverage

• A) I and II only
• B) I, III and IV only
• C) II and IV only
• D) I, II, III and IV

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Definitions:

Information Processing

The collection, manipulation, storage, retrieval, and classification of information.

Revenue Journal

An accounting ledger dedicated to recording sales transactions that generate revenue for a business.

Account

An accounting form that is used to record the increases and decreases in each financial statement item.

General Ledger

General Ledger is a comprehensive accounting record of all financial transactions that have occurred within a company over a period of time, serving as the foundation for financial statements.