One Problem with Comparing Financial Ratios Prepared by Different Reporting

question 44

Multiple Choice

One problem with comparing financial ratios prepared by different reporting agencies is

• A) some agencies receive financial information later than others.
• B) agencies vary in their policies as to what is included in specific calculations.
• C) some agencies are careless in their reporting.
• D) some firms are more conservative in their accounting practices.
• E) none of these.

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Definitions:

Oceanic Crust

The thin part of Earth's crust that underlies the ocean basins, composed mostly of basalt and denser than the continental crust.

Core

The innermost part of the Earth, composed primarily of iron and nickel, divided into a solid inner core and a liquid outer core.

Mantle

The thick layer of the Earth located between the crust and the core, composed of silicate rocks rich in magnesium and iron.

Central Zone

A term that can refer to the central area of a geological feature, a city, or a defined area, known for its significance or distinguishing characteristics.