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___________, which depict relationships between items on a​ firm's financial​ statements, are used to discern whether a firm is meeting its financial objectives and how it stacks up against its industry peers.A. Standards

B. Budgets
C. Pro formas
D. Financial ratios
E. Forecasts

1 Answer

4 votes

Answer:

D. Financial ratios

Step-by-step explanation:

Financial ratios are numerical values derived from financial statements to provide meaningful information and analysis about the company. Ratios use financial figures in the accounting statements to offer insights into a company's liquidity, profitability, and operational efficiency.

Financial ratio analysis can be used to compare business performance against its past trend and against the industry's performance. Information provided by ratio analysis is useful to management, investors, and shareholders. Although the data from ratio analysis is insightful, it requires additional information from the financial statements to provide the true picture of a company's state of affairs.

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