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:

Defined Period

A specific duration of time that has clear start and end points, often used for analysis, measurement, or planning purposes.

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Globalization

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