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Ratio analysis information can be used to examine trends in:
APerformance
BThe weather
CLegislation
DGeography
Answer & Solution
Correct answer: A. Performance
1. Ratio analysis has several stated uses.
2. Ratios are computed from the financial statements.
3. The information resulting from ratio analysis can examine trends in performance.
4. It can also establish benchmarks for success.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 6 'Measures of Financial Health'_
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