Question

factor should be considered when comparing the net income figure of a partnership to that of a corporation of similar size​

Answer 1

Answer:

Ratio analysis provides investors with tools to analyze a company's financial statements as it relates to risk, reward (profitability), solvency, and how well a company operates. Investors generally use ratios to evaluate companies and make comparisons between companies within an industry. Ratio analysis simplifies the process of comparing the financial statements of multiple companies. There are five basic types of financial ratios used:

profitability ratios (e.g., net profit margin and return on shareholders' equity)

liquidity ratios (e.g., working capital)

debt or leverage ratios (e.g., debt-to-equity and debt-to-asset ratios)

operations ratios (e.g., inventory turnover)

market ratios (e.g. earnings per share (EPS))

hope it helps!