When Should an Average Amount Be Used for the Numerator

question 45

Multiple Choice

When should an average amount be used for the numerator or denominator?

• A) When the numerator is a balance sheet item or items
• B) When the denominator is a balance sheet item or items
• C) When a ratio consists of an income statement item and a balance sheet item
• D) When the numerator is an income statement item or items

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Definitions:

Inhospitable

Referring to environments that are harsh, difficult to live in, or unwelcoming to human settlement or certain forms of life.

Insecticide

Chemical substances used to kill or manage the population of insects, often employed in agriculture, public health, and homes.

Aerial Spraying

The application of pesticides or other chemicals from aircraft to control pests and diseases in crops or to control mosquito populations.