6 Ratio analysis A provides a yearto year comparison of a c

6) Ratio analysis . A) provides a year-to year comparison of a company\'s performance in different periods B) is used most effectively to measure a company against other companies in the sar denote trends within the company C) cannot be used to measure a company against other companies in the same industry because the necessary information is not available D) provides a way to compare different companies Which of the following best describes horizontal analysis?

Solution

Answer. (A) provides a year to year comparison of a company\'s performance in different periods

Ratio analysis can be used to provide informance about a company\'s performance, ratio analysis is used to evaluate of a company\'s operating and financing performance such as its efficiency, liquidity, solvency and profitability. It is a quantitative analysis of informtion contained in company\'s financial statements.