Which of the Following Is True of the Application of Ratio

question 43

Multiple Choice

Which of the following is true of the application of ratio analysis?

• A) These are as reliable as the source data.
• B) Analysts should use simple rules of thumb when applying these.
• C) These represent causes, not effects.
• D) Accounting estimates in the data do not impact ratios.

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Definitions:

Executory

Pertaining to a contract or agreement in which not all obligations or terms have yet been fulfilled by the involved parties.

Partially Performed

Refers to a contract or agreement that has been started but not completed, fulfilling some but not all obligations.

Adequacy of Consideration

A legal principle assessing whether the value exchanged in a contract is reasonable and fair to both parties.

Breach-of-Contract

An act of breaking the terms set out in a contract, which can lead to legal consequences and damages.