Question

Percentage analyses, ratios, turnovers, and other measures of financial position and operating results are select one:

a. a substitute for sound judgment.
b. useful analytical measures.
c. enough information for analysis, industry information is not needed.
d. unnecessary for analysis, but reaction is better.

Answer 1

Percentage analysis, ratios, turnovers, and other measures of financial position and operating results are useful analytical measures.
Analytical measures are useful in assessing solvency and profitability of a business. Type of analytical measures used depends on; the size of the firm or business, the capital structure f the business, the type of business activity undertaken. They are useful for evaluating the financial results of a business and the performance of management.