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28-11-2019
Business

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Ratio analysis ________. A. cannot be used to compare a company against other companies in the same industry because the necessary information is not available B. cannot be used to evaluate a company's performance C. cannot be used to evaluate a company's financial condition D. is used most effectively to compare a company against other companies in the same industry and to denote trends within the company

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omotayoadekoya1 omotayoadekoya1

29-11-2019

Answer:

D. is used most effectively to compare a company against other companies in the same industry and to denote trends within the company

Explanation:

Ratio analysis is used to measure a company's performance and is best interpreted with data collected from other companies in the same industry faced by similar factors.

These companies also usually have similar accounting policies and as such, comparing a company's performance with companies in the same industry is used as an effective measure.

Considering the options, the right answer is D. is used most effectively to compare a company against other companies in the same industry and to denote trends within the company.

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