Which of the following statements are true about ratio analys is? 1. Ratio analysis is useful in financial analysis. 2. Ratio analysis is helpful in communication and coordination. 3. Ratio analysis is not helpful in identifying weak spots of the business. 4. Ratio analysis is helpful in financial planning and forecasting.

The correct answer is: D. 1, 2, 3 and 4

Ratio analysis is a tool that can be used to assess the financial health of a business. It involves comparing different financial ratios to identify trends and patterns. Ratio analysis can be used to identify weak spots in a business, as well as to track its progress over time. It can also be used to compare the performance of different businesses.

Ratio analysis is a useful tool for financial analysis, communication and coordination, and financial planning and forecasting.

• Financial analysis: Ratio analysis can be used to assess the financial health of a business by comparing its financial ratios to industry standards or to its own historical performance. This information can be used to identify potential problems, such as high debt levels or declining profitability.
• Communication and coordination: Ratio analysis can be used to communicate the financial performance of a business to stakeholders, such as investors, creditors, and employees. It can also be used to coordinate the activities of different departments within a business, such as the accounting department and the marketing department.
• Financial planning and forecasting: Ratio analysis can be used to forecast the future financial performance of a business. This information can be used to make decisions about investment, financing, and marketing.

Therefore, all of the statements in the question are true.