Which One of the Following Statements Is Correct Concerning Ratio

question 70

Multiple Choice

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

• A)A single ratio is often computed differently by different individuals.
• 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)Ratios can not be used for comparison purposes over periods of time.

---

Definitions:

Industrialization

The transformation from agrarian-based economies to those dominated by industry and machine manufacturing, significantly altering societal structures and ways of life.

Economic system

The structured and organized way a society decides on the production, distribution, and consumption of goods and services.

Domesticating

The process of adapting wild plants or animals for human use, such as for food, work, companionship, or as pets.

Pastoralism

An economic system based on tending herds of large animals.