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.

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Definitions:

Factory Overhead Cost

Expenses related to operating a factory that are not directly tied to individual products, including utilities, rent, and maintenance of machinery.

Materials Used

The raw materials and components consumed in the process of manufacturing finished goods.

Property Tax

Property tax is a levy imposed by a government on a property owner, based on the value of the property.

Manufacturing Costs Incurred

The total expenses involved in the manufacturing process, including direct materials, direct labor, and overhead costs.