XACC 291 Week 7 Dq 2

We are getting into the stages of the “meat and potatoes” of what we are looking to accomplish in this class. Ratios will be the foundation of your final; therefore,, we better make sure we know what ratios are all about. Here you go:

What are some common ratios used to analyze financial information?

Which are the most important?

What are some examples of how ratios are used in the decision-making process?

…………Answer Preview……………..

There are four common ratios that are used to analyze the financial information which include profitability ratios, efficiency ratios, liquidity ratios and solvency ratios. Profitability ratios help analyzes the effectiveness of management that regards to returns that are generated on the sales and investment. It measures the success of an entity. All the cost of goods sold and the earnings before interest and taxes are taken into…

APA

347 words