Select the Incorrect Statement Regarding Ratio Analysis

question 125

Multiple Choice

Select the incorrect statement regarding ratio analysis.

• A)Ratio analysis involves making comparisons between different accounts in the same set of financial statements.
• B)There are many different ratios available for evaluating a firm's performance.
• C)Some ratios involve an account from the balance sheet and one from the income statement.
• D)Ratio analysis is a specific form of horizontal analysis.

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Definitions:

Supplier-customer Combinations

Various possible pairings or relationships between suppliers and customers in a market or supply chain.

Mutually Exclusive

Events that cannot happen simultaneously.

Simple Events

In probability, a simple event is a single outcome within a sample space, not composed of other events.

Probability

A measure of the likelihood that an event will occur, ranging from 0 (impossibility) to 1 (certainty).