Asked by Justin Berry on May 29, 2024
Verified
In ratio analysis the ratios are never expressed as a
A) rate.
B) negative figure.
C) percentage.
D) simple proportion.
Ratio Analysis
A financial analysis technique that uses ratios derived from financial statements to assess a company's performance and financial health.
Negative Figure
A value less than zero, often indicated in financial statements to represent losses, deficits, or outflows.
- Acquire knowledge of essential concepts and techniques in the analysis of financial statements.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
B
Explanation :
Ratios can never be negative, as they represent a comparison between two numbers or values. Negative figures would not make sense in this context.
Learning Objectives
- Acquire knowledge of essential concepts and techniques in the analysis of financial statements.
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