The Analyst Should Be Careful When Evaluating a Ratio Analysis

question 94

Multiple Choice

The analyst should be careful when evaluating a ratio analysis that

• A) the dates of the financial statements being compared are from the same time.
• B) pre-audited statements are used.
• C) the overall performance of the firm may be judged on a single ratio.
• D) all of the above.

---

Definitions:

Hormone

Chemical messengers produced by glands that regulate bodily functions by traveling through the bloodstream.

Ectodermal Cells

Cells originating from the outermost layer of the embryo, which give rise to the epidermis, nervous system, and some sensory organs.

Neural Tube

The embryonic precursor to the central nervous system, which develops into the brain and spinal cord in vertebrates.

Cell Migration

The movement of cells from one area to another, often a part of processes such as wound healing and the development of organisms.