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:

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties reach a mutually agreeable solution.

Procedural Fairness

The requirement for legal and administrative decisions to be made following processes that are fair, proper, and established, ensuring individuals are treated justly.

Natural Justice

Legal principles which ensure fair treatment in judicial and administrative decisions, including the right to a fair hearing and the rule against bias.

Fair Treatment

The principle of dealing with others in a way that is right, equitable, and free from bias or favoritism.