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:

Sleepiness

A state of feeling drowsy or tired, often leading to a need for sleep.

Day

A period of 24 hours representing a full rotation of the Earth on its axis, traditionally divided into day (light) and night (dark) periods.

Sleep Spindles

Bursts of brain activity observable on an EEG that occur during stage 2 of sleep, believed to play a role in learning and memory.

Non-REM Sleep

A period of sleep that includes stages 1 through 3, characterized by a decrease in physiological activity and slower brain waves compared to REM sleep.