Financial Ratios Are Open to Wide Interpretation and Should Be

question 16

True/False

Financial ratios are open to wide interpretation and should be relied on only to get a general perspective of the relative financial health of the business.

---

Definitions:

Rate Of Exchange

The worth of one currency when converted into another.

Pound

The currency unit of the United Kingdom, also known as the pound sterling, symbolized by £.

Dollar

A unit of currency used in the United States and other countries, symbolized by $.

Net Investment Income

Income received from investment assets (like shares or bonds) minus fees, costs, and taxes associated with the investment.