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ad-work [718]
3 years ago
14

. Information found on the company's income statement and balance sheet is extracted from these documents and examined more clos

ely through the use of
Business
2 answers:
zhenek [66]3 years ago
8 0

Answer: Ratio Analysis

Explanation;

Ratio analysis is a very important method of financial analysis that enables one to make inferences and see relationships from the data presented by a company in it's financial statements.

Most ratios are divided into 5 different types being;

  • Profitability
  • Liquidity
  • Activity
  • Debt, and
  • Market

An example of a Liquidity ratio would be the Current Ration which divides Current Assets by Current Liabilities to see if the company has enough liquidity to pay off current liabilities.

Degger [83]3 years ago
3 0

Answer:

Ratio analysis

Explanation:

Financial statements are used to show the assets, liabilities, revenues, expenses, and owners equity of a business entity within a given time frame.

Income statement is revenue less expense within a given period. While the balance sheet shows the financial position of a business at a particular point, that is its assets, liabilities, and owner equity.

Information form financial statements are analysed by the use of ratio analysis to gain a better understanding of financial condition of an organisation.

Ratio analysis compares the magnitude of line items within financial statements to determine liquidity, profitability, solvency and operational efficiency of a business.

For example current ratio shows how well a business can use its current assets to settle its current liability, this is a liquidity ratio.

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3 years ago
Which of the following best describes how consumers make financial decisions in a market economy? A. The media forces consumers
notka56 [123]

Answer:

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3 years ago
The properly marked source document states:
Mariana [72]

Answer:

B. Contained in

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Base on the scenario been described in the question, the concept that is used to derivatively classify the statement in the new document is contained in

Contained in can be said to a classified statement in a new document

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