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.

---

Definitions:

Human Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.

Ego States

Psychological constructs representing different parts of one's personality or experiences, often used in transactional analysis.

Ego State

Represents the different parts of our personality that become activated in response to different situations, based on transactional analysis theory.

Chronic Conflict

Long-standing disagreements or battles between groups or individuals that are resistant to resolution.