Ratios – Principles of Accounting
Ratios provide the users of financial statements with a great deal of information about the entity. Do ratios tell the whole story? How could liquidity ratios be used by investors to determine whether or not to invest in a company?
Reference all cited materials especially text used from attached chapter. Must use attached chapter to answer discussion questions.
Reference: K Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I . San Diego, CA: Bridgepoint Education, Inc.
Financial ratios are used to measure how well a business is performing as they provide different stakeholders with key information about the business entity. Thus, I do believe that ratios tell the whole story about the business. Investors rely on a variety of ratios to know the overall performance of the organization and use them to…