Ratios Are Used as Tools in Financial Analysis

question 191

Multiple Choice

Ratios are used as tools in financial analysis

• A) instead of horizontal and vertical analyses.
• B) because they may provide information that is not apparent from inspection of the individual components of the ratio.
• C) because even single ratios by themselves are quite meaningful.
• D) because they are prescribed by GAAP.

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Definitions:

Sense

refers to any of the faculties by which stimuli from outside or inside the body are received and felt, such as sight, hearing, smell, taste, or touch.

Differentiated Sense

refers to a heightened or refined ability to perceive nuances in stimuli or environments, distinguishing subtle differences.

General Self-Worth

refers to an individual's overall evaluation or assessment of their own value and self-esteem.

Cognitive Competence

The ability to understand, process, and utilize information effectively.