In Financial Statement Analysis,ratios Are

question 28

Multiple Choice

In financial statement analysis,ratios are:

• A)the only type of analysis where industry data are available.
• B)absolute numbers converted to a common base.
• C)fractions usually expressed in percent or times.
• D)the only indication of the financial position of the firm.
• E)None of the answers are correct.

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Definitions:

Partial Derecognition

The process in accounting where only a portion of a financial asset or liability is removed from the balance sheet.

Receivables

These are amounts owed to a business by its customers for goods or services delivered on credit.

GAAP

Generally Accepted Accounting Principles, a set of accounting rules and standards used in the United States for preparing financial statements.

IFRS

A collection of worldwide accounting rules for financial reporting, known as International Financial Reporting Standards.