Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 24)
In the context of financial statement analysis, what is the purpose of calculating ratios?
To calculate tax liabilities.
To assess the financial performance and position of a company.
To prepare a company's budget.
To record daily transactions.
הֶסבֵּר
Financial ratio analysis is used to assess the company's financial standing.