Financial Ratios Are Best Used in Comparison With

question 85

Multiple Choice

Financial ratios are best used in comparison with:

• A)​A budget
• B)​History
• C)​Industry
• D)​All of the above

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Definitions:

Notes Payable

Short or long-term financial obligations represented by promissory notes, indicating money owed by a company.

Accounts Payable

Money owed by a company to its suppliers or vendors for goods or services received but not yet paid for.

Current Liability

Short-term financial obligations that are due within one year or within a normal operating cycle.

Current Assets

Assets expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.