Which of These Statements Is False

question 17

Multiple Choice

Which of these statements is false?

• A)A ratio can be computed from any pair of numbers.
• B)Given the large quantity of variables included in financial statements,a very long list of meaningful ratios can be derived.
• C)Comparing ratios computed from income statement and balance sheet numbers can create difficulties due to the timing of the financial statements.
• D)Financial ratios are usually expressed in percent or times.
• E)In vertical analysis,a figure from this year's statement is compared with a base selected from the prior statement.

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Definitions:

Constitutional

Relating to the system of beliefs and laws that governs the organization and operation of a state or organization, typically documented in a written constitution.

Public Goods

Public goods are characterized by their non-excludability and non-rivalrous consumption, meaning they can be used by everyone and one person's use does not diminish another's, such as clean air or public parks.

Benefits-received Principle

The concept that individuals or entities should pay taxes in proportion to the benefits they receive from government services.

Childless Couple

A partnership between two people who do not have and do not plan to have children.