Which of These Statements Is False

question 15

Multiple Choice

Which of these statements is false?

• A) A ratio can be computed from any pair of numbers.
• B) Given the large quantity of variables included in financial statements, a very long list of meaningful ratios can be derived.
• C) Comparing ratios computed from income statement and balance sheet numbers can create difficulties due to the timing of the financial statements.
• D) Financial ratios are usually expressed in percent or times.
• E) In vertical analysis, a figure from the year's statement is compared with a base selected from the prior statement.

---

Definitions:

Resisting Forces

Forces that oppose motion or movement, including friction, air resistance, and tension, which work against the direction of motion.

Plate Tectonics

A theory in which the lithosphere is divided into a number of mostly rigid plates that move relative to one another, causing tectonic activity along these boundaries.

Tectonic Plate

A massive, irregularly shaped slab of solid rock, part of the Earth's lithosphere, which moves and interacts with other plates in a process that shapes the Earth's surface.

Centimeters

A unit of length in the metric system equal to one hundredth of a meter.