A Ratio Calculated in the Analysis of Financial Statements

question 56

Multiple Choice

A ratio calculated in the analysis of financial statements

• A) expresses a mathematical relationship between two numbers.
• B) shows the percentage increase from one year to another.
• C) restates all items on a financial statement in terms of dollars of the same purchasing power.
• D) is meaningful only if the numerator is greater than the denominator.

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Definitions:

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A method of communication involving the sending of messages or information through physically written or printed text.

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A recommendation or information provided by a person or source, vouching for the qualifications, character, or background of someone.

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