Question
When a manager has all the financial information (costs, revenues, assets, liabilities), it is then upon them to determine the financial health of the company.
When a manager has all the financial information (costs, revenues, assets, liabilities), it is then upon them to determine the financial health of the company. This is done through the following actions:
Multiple Choice
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Look at comparative results from other like companies (ratios, margins, costs, etc)
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Calculate ratios using the company's financial statements over a period of time or relating to a specific time period to identify any significant changes.
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Perform a vertical and/or horizontal analysis to identify any trends that might appear concerning.
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All of the above.
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