Question : Comparative financial data are then analyzed with reference to financial characteristics like profitability, solvency and liquidity are called ______.
Option 1: Comparison
Option 2: Ratio Analysis
Option 3: Interpretation
Option 4: All of the above
Answer (1)
25th Jan, 2024
Correct Answer: Ratio Analysis
Solution : Answer = Ratio Analysis
Ratio analysis examines line-item data from the financial statements of an organisation to provide information about solvency, profitability, liquidity, and operational effectiveness.
Hence, the correct option is 2.
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