Question

______ is a tool for analyzing the financial statements of any enterprise.

Options

• Ratio analysis 

• Horizontal analysis

• Vertical analysis 

• None of these

Answer 1

Ratio analysis is a tool for analyzing the financial statements of any enterprise.

Explanation:

Ratio analysis is an essential component in interpreting the results provided by financial statements. It provides consumers with critical financial information and highlights areas that need to be investigated. A technique is ratio analysis. This involves the regrouping of data through the use of arithmetic relationships, yet its interpretation is difficult.