The Most Effective Method of Directly Evaluating the Financial Performance

question 92

Multiple Choice

The most effective method of directly evaluating the financial performance of a firm is to compare the financial ratios of the firm to:

• A)the firm's ratios from prior time periods and to the ratios of firms with similar operations.
• B)the average ratios of all firms within the same country over a period of time.
• C)those of other firms located in the same geographic area that are similarly sized.
• D)the average ratios of the firm's international peer group.
• E)those of the largest conglomerate that has operations in the same industry as the firm.

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