Ratio analysis helps business in _______ the problem area as well as the bright areas of the business.

Identifying

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Calculating

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Summarizing

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None of the above

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Solution

The correct option is A Identifying
A ratio analysis is a quantitative analysis of information contained in a company's financial statements. Ratio analysis used to evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability and solvency. Ratio analysis helps business in identifying the problem area and bright areas of the business.

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