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18 December, 20:23

Which of the following can be used to simultaneously view the relationships between all numbers on the balance sheet or income statement?

a. Horizontal analysis

b. Vertical analysis

c. Ratio analysis

d. Trend analysis

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Answers (1)
  1. 18 December, 20:46
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    It is Ratio Analysis (C)

    Explanation:

    Ratio analysis is used to establish and understand the relationship that exist between different pieces of financial information in the financial statements of a business.

    It is commonly used to compare the performance of one company to another using common specific ratios.

    Internally, it can be used to compare the performance one period to another period to establish the trend and it can also be used to compare performance of one division to another.
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