Which Statement Is True of Ratio Analysis

question 26

Multiple Choice

Which statement is true of ratio analysis:

• A) can provide useful information on a firm's current position but should never be used to forecast future performance.
• B) can provide useful information on a firm's current position and hint at future performance.
• C) can provide useful information on a firm's past but not current position.
• D) can provide useful information on a firm's past and current position, but should never be used to forecast future performance.

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Definitions:

Nucleus

The membrane-bound organelle in eukaryotic cells containing genetic material (DNA), responsible for controlling the cell's growth, metabolism, and reproduction.

Chloroplast-containing

Referring to cells that possess chloroplasts, organelles responsible for photosynthesis in plants and some algae, converting light energy into chemical energy.

Guard Cell

One of a pair of epidermal cells that adjust their shape to form a stomatal pore for gas exchange.

Companion Cell

A cell in the phloem of flowering plants that governs loading and unloading sugar into the sieve tube element for translocation.