Concept:Financial statement analysis is done using accounting ratios, which compare financial figures.
Explanation:Accounting ratios are the standard tool for analyzing and interpreting financial statements.
They show the relationship between two or more financial data items.
Ratios help users such as shareholders, creditors, and managers understand profitability, liquidity, and financial stability.
They make it easier to assess a company's performance and financial health.
Therefore, the instrument used for this purpose is accounting ratios.
Answer:A. accounting ratios