Which of the Following Is TRUE About a Pie Chart

question 73

Multiple Choice

Which of the following is TRUE about a pie chart?

• A)It shows the relationship of each part to a whole.
• B)It displays data that is arranged in one or more columns or rows or data.
• C)A pie chart has a minimum of three data series.
• D)A pie chart should be your first choice when there are two data series to plot.

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Definitions:

Financial Statement Analysis

The practice of examining and evaluating a firm's financial reports to improve financial decision-making.

Comparative Financial Statements

Financial statements that provide financial information for multiple periods, enabling comparison and trend analysis over time.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity position, calculated by dividing liquid assets (excluding inventories) by current liabilities.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.