In Financial Statement Analysis, Ratios Are

question 12

Multiple Choice

In financial statement analysis, ratios are:

• A) the only type of analysis where industry data are available
• B) absolute numbers converted to a common base
• C) fractions usually expressed in percent or times
• D) the only indication of the financial position of the firm
• E) none of the answers are correct

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Definitions:

Biotic Potential

The highest possible rate of reproduction for a living being when the environment is most favorable.

Environmental Resistance

The sum of environmental factors (like predation, disease, and competition) that limit the growth of populations within an ecosystem.

Mortality

The state of being subject to death or the incidence of death within a population.

Natality

The birth rate, or the number of births within a population over a certain period of time, often expressed per 1000 individuals.