Question

Which of the following statements are true about Ratio analysis?
a. Ratio analysis is useful in financial analysis.
b. Ratio analysis is helpful in communication and coordination.
c. Ratio analysis is not helpful in identifying weak spots of the business.
d. Ratio analysis is helpful in financial planning and forecasting.

• A. A, B, and D
• B. A, C, and D
• C. A, B, and C
• D. A, B, C, D

Answer 1

The correct option is A A, B, and D

A ratio analysis is a quantitative analysis of information contained in a company's financial statements. analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. It is helpful in financial planning and forecasting, compares company's financial standing with the industry average.