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Which of the following can be used to simultaneously view the relationships between all numbers on the balance sheet or income statement?

a.Horizontal analysis
b.Vertical analysis
c.Ratio analysis
d.Trend analysis

1 Answer

3 votes

Answer:

It is Ratio Analysis (C)

Step-by-step explanation:

Ratio analysis is used to establish and understand the relationship that exist between different pieces of financial information in the financial statements of a business.

It is commonly used to compare the performance of one company to another using common specific ratios .

Internally, it can be used to compare the performance one period to another period to establish the trend and it can also be used to compare performance of one division to another .

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