Which of the Following Statements About a Ratio Is NOT

question 45

Multiple Choice

Which of the following statements about a ratio is NOT true?

• A) If the financial statements are materially misstated,then ratios will be misleading.
• B) A ratio is always expressed as a percentage.
• C) A ratio can be interpreted and used meaningfully only with a good understanding of the company.
• D) Ratios are indicators that can be interpreted.

Implement patient safety strategies on both the individual (point of care) and organizational levels.

Understand the classifications of cash flows in the statement of cash flows.

Comprehend the impact of bond issuance at premium or discount on interest expense and the effective-interest method.

Understand the significance of the debt-to-equity ratio in assessing financial leverage.

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Definitions:

Price

The financial cost associated with acquiring a good, service, or asset.

Income

Funds obtained regularly from work performed or investments made.

Budget Line

The budget line represents the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.

Slope

A measure of the steepness or inclination of a line or curve, indicating the ratio of the vertical change to the horizontal change between two points on the line.