Kevin, a local accountant, recently was hired to make an assessment of

QUESTION

Kevin, a local accountant, recently was hired to make an assessment of Seaport Seafood Restaurant’s financial condition. What was most likely Kevin’s means for making this evaluation?

A) trial balance
B) double-entry bookkeeping
C) ratio analysis
D) journal entries
E) forensic accounting

ANSWER

Answer: C
Explanation: C) When an accountant makes an assessment of a company’s financial condition, his or her means for making this evaluation is by one or another type of ratio analysis, which is a measure of the company’s financial health.