Which of the Following Is NOT True

question 78

Multiple Choice

Which of the following is NOT true?

• A)Financial analysis can be fully standardized.
• B)Effective analysis requires identification of the most appropriate ratios for the particular objective, as all ratios will not give the same information.
• C)The output from financial analysis can often provide only general clues.
• D)Some financial ratios will not be appropriate for firms of different sizes.

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Definitions:

Market Supply

The total amount of a specific good or service that is available to consumers at current prices in a given market.

Long-Run Equilibrium

A state in which all firms in a market are making normal profits and there is no incentive for market entry or exit, usually achieved in the long term.

Demand Increases

Situations or conditions that lead to a rise in the quantity of a product or service that consumers are willing and able to purchase.

Market Supply

The total quantity of a good or service that all producers in a market are willing and able to sell at various prices.