Describe What Can Make a Graph Misleading or Deceptive

question 41

Multiple Choice

Describe What Can Make a Graph Misleading or Deceptive
-

• A) The vertical scale does not begin at zero.
• B) The horizontal label is incomplete.
• C) The trend is depicted in the wrong direction.
• D) The graphic is not misleading.

Identify factors that affect the return on investment and how management decisions can impact these factors.

Interpret financial data to assess a division or company’s performance.

Understand the relationship between turnover, margin, and ROI.

Analyze financial statements to identify key performance indicators.

---

Definitions:

Relative PPP

Relative Purchasing Power Parity, a theory which states that exchange rates between currencies change to compensate for inflation rate differences among countries.

Inflation

How quickly the average cost of goods and services goes up, resulting in reduced purchasing capacity.

Real Rate

The interest rate or rate of return on an investment after adjusting for inflation, representing the actual purchasing power of earnings.

Inflation Rate

This measures the percentage increase in the price level of goods and services in an economy over a period of time.