A company reports accounting data in its financial statements. This data is used

Question

A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company's strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company's performance to that of its competitors, or to its past or expected future performance. Such insight helps managers and analysts improve their decision making. Consider the following scenario: Your boss asked you to analyze Green Hamster Manufacturing's performance for the past three years and prepare a report that includes a benchmarking of the company's performance. Using the company's last three years of financial reports, you've calculated its financial ratios, including the ratios of Green Hamster Manufacturing's competition-that is, comparable ratios of other participants in the industry-and submitted the report. Along with calculating the ratios, what else is needed for your report? O Making observations and identifying trends that are suggested by the ratio analysis O Identifying the factors that drive the trends in the ratios O Both of the above Most decision makers and analysts use five groups of ratios to examine the different aspects of a company's performance. Indicate whether each of the following statements regarding financial ratios are true or false?

Explanation / Answer

1.both of the above

2. true

3. true

4. false

5. true

6. true

7. check first 2 - diff firm use diff accouting practicees, and a firm may operate in multiple industry

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.