A ratio calculated in the analysis of financial statements shows the percentage increase from one year to another. restates all items on a financial statement in terms of dollars of the same purchasing power. expresses a mathematical relationship between two numbers. is meaningful only if the numerator is greater than the denominator.

Question

Tiana Phelps

Mathematics

4 February, 09:56

A ratio calculated in the analysis of financial statements shows the percentage increase from one year to another. restates all items on a financial statement in terms of dollars of the same purchasing power. expresses a mathematical relationship between two numbers. is meaningful only if the numerator is greater than the denominator.

+1

Answers (1)

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Esperanza Downs · Answer 1

expresses a mathematical relationship between two numbers

Step-by-step explanation:

A ratio is a quantitative relationship between the two numbers. Here quantitative means the number of the quantity which is counted. It represents the relation between the one number to the other number

Just take an example

The numerator is 6 and the denominator is 3

So the ratio would be 2:1

Hence, the third option is correct