Which One of the Following Statements Is Correct Concerning Ratio

question 18

Multiple Choice

Which one of the following statements is correct concerning ratio analysis?

• A)Ratios cannot be used for comparison purposes over extended periods of time.
• B)Ratios do not address the problem of size differences among firms.
• C)Only a very limited number of ratios can be used for analytical purposes.
• D)Each ratio has a specific formula that is used consistently by all analysts.
• E)A single ratio is often computed differently by different individuals.

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Definitions:

Imbalanced

A state of lacking harmony or equality between different elements, leading to instability or dysfunction.

Brain Cells

The basic units of the brain, including neurons, which process and transmit information, and glial cells, which provide support and nutrition.

Central Nervous System

The primary command center for the nervous system, consisting of the brain and spinal cord, responsible for processing and sending out instructions.