Multiple Choice QuestionA company would rely on ratio analysis to calculate the organization's:Multiple choice question.projected sales.projected income tax.dividend payout.financial health.
Question
Multiple Choice QuestionA company would rely on ratio analysis to calculate the organization's:Multiple choice question.projected sales.projected income tax.dividend payout.financial health.
Solution
The correct answer is:
financial health.
Explanation:
Ratio analysis is a quantitative analysis of information contained in a company's financial statements. It is used to evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability and solvency. Thus, a company would rely on ratio analysis to calculate the organization's financial health, not its projected sales, projected income tax, or dividend payout.
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