A Ratio Calculated in the Analysis of Financial Statements

question 56

Multiple Choice

A ratio calculated in the analysis of financial statements

• A) expresses a mathematical relationship between two numbers.
• B) shows the percentage increase from one year to another.
• C) restates all items on a financial statement in terms of dollars of the same purchasing power.
• D) is meaningful only if the numerator is greater than the denominator.

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Definitions:

Radiation

The emission of energy as electromagnetic waves or as moving subatomic particles, especially high-energy particles that cause ionization.

Embryo

The early stage of development in multicellular organisms after fertilization and before becoming a fetus, characterized by rapid cell division and differentiation.

Fetus

A developing mammal or human after the embryonic stage and before birth.

Syphilis

A sexually transmitted bacterial infection that can cause serious health problems if not treated.