Which Is True? Ratio Analysis

question 37

Multiple Choice

Which is true? Ratio analysis

• A)can provide useful information on a firm's current position but should never be used to forecast future performance.
• B)can provide useful information on a firm's current position and hint at future performance.
• C)can provide useful information on a firm's past but not current position.
• D)can provide useful information on a firm's past and current position, but should never be used to forecast future performance.

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Definitions:

Independent Variable

A variable often denoted as 'X' whose variation does not depend on that of another and is manipulated to observe its effect on a dependent variable.

Levels

The different values or categories of a factor in an experiment.

Combinations

A mathematical technique to determine the total possible arrangements of a set of items where the order of the items does not matter.

Factorial Designs

A statistical analysis method that allows researchers to study the effects of two or more independent variables on a dependent variable simultaneously.