A Ratio Calculated in the Analysis of Financial Statements

question 56

Multiple Choice

A ratio calculated in the analysis of financial statements

• A) expresses a mathematical relationship between two numbers.
• B) shows the percentage increase from one year to another.
• C) restates all items on a financial statement in terms of dollars of the same purchasing power.
• D) is meaningful only if the numerator is greater than the denominator.

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Definitions:

Serious Crime

A criminal offense that is considered severely harmful to individuals or society, typically involving violence or the threat of violence, and carrying heavy penalties.

Imprisonment

The act of confining someone in a prison as a legal punishment for committing a crime.

Felony

A serious criminal offense that is usually punishable by imprisonment for more than one year or by death.

Capital Offense

A crime that is punishable by death under the legal system.