Financial Ratios Are Used to Assess a Company's Statements Because

question 17

Multiple Choice

Financial ratios are used to assess a company's statements because they

• A) Eliminate the difference of scale between companies
• B) Allow a comparison of companies from different industrial sectors
• C) Eliminate the effects of inflation from period to period
• D) Immediately identify problems that must be corrected in a business
• E) Provide a standard set of calculations to analyze any business

---

Definitions:

Main Effect

In statistics, the direct influence of an independent variable on a dependent variable in an experimental design.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Motivation Levels

The intensity of one's drive or desire to undertake specific behaviors or pursue particular outcomes.

Factorial Design

An experimental setup that involves two or more factors with different levels to study their effects on the dependent variable.