What Is an Advantage of Using Ratio Analysis in Comparing

question 3

Multiple Choice

What is an advantage of using ratio analysis in comparing financial statements from different countries?

• A)Ratios are expressed as percentages, making currency differences irrelevant to the analysis.
• B)Ratios highlight the holding gains or losses related to currency translation.
• C)Purchasing power gains and losses from currency translation show up clearly in ratio analysis.
• D)Comparing business ratios across countries removes the effect of economic conditions and business culture.

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