Ratio analysis expresses relationships between two different items from which of the following financial statements?

Income statement

Balance sheet

Both income statement and balance sheet

None of the above

Expert Solution

Answer is

Both Income statement and Balance sheet

Ratio analysis expresses relationship between two different items that can come from income statement or/and balance sheet.

For Exaple

Net Profit Ratio = Net Profit / Sales

Above both terms comes from income statement

Return on Assets = Net Profit / Total Assets

From above terms one is come from income statement and one is come from balance sheet.

ekkarill92 answered 3 years ago

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