Financial Ratios help to identify some of the financial strengths and weaknesses of a company. What are two ways that the ratios provide for making meaningful comparisons of a firm's financial data?a. Smoothing out differences when comparing firms that use different accounting practices and restating accounting data in relative terms.b. Identifying year over year changes in balance sheet and income statement items.c. Examining ratios across time to identify trends and comparing the firm's ratios with those of other firms.d. Determining how long it takes to collect the firm's receivables and how long it takes to pay it accounts payables.

Respuesta :

Answer:

c. Examining ratios across time to identify trends and comparing the firm's ratios with those of other firms.

Explanation:

The financial ratios represent the financial position, performance, position of the business organization. Plus it also identifies strengths and weaknesses.  

The financial ratios comprise of current ratio, quick ratio, debt to equity ratio, net profit margin, etc

These ratios help to identify the trends by comparing the ratios between two firms so that proper analyses could be made