Question

Which term best describes the measure provided by Accounting Ratios to assess a company's performance and condition?

A Definitive Correct Answer Incorrect Answer
B Gross Correct Answer Incorrect Answer
C Relative Correct Answer Incorrect Answer
D Qualitative Correct Answer Incorrect Answer
E Absolute Correct Answer Incorrect Answer

Solution

Accounting ratios are a relative measure of a company’s performance and condition as they are calculated by determining the relationship between two or more financial variables or values taken from the financial data or financial statements of an entity.

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