In Order to Understand If the Results of Ratio Calculations

question 96

Multiple Choice

In order to understand if the results of ratio calculations indicate a financially strong company,the results:

• A)Should be compared to other firms in the same industry.
• B)Are compared to same size firms in the same geographic region of the country.
• C)Are compared to the norms established by generally accepted accounting principles.
• D)Are compared to the largest firms in the country.

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