Accounting for IGCSE & O level - Advanced Principles (Section 9 - No. 7)
What is the purpose of doing a ratio analysis?
To identify and correct errors in financial statements.
To evaluate the financial performance of a business.
To satisfy the requirements of regulatory bodies.
To prepare financial statements.
Paskaidrojums
Ratio analysis provides insights into a business's financial performance and is used to make decisions based on this.