The Analyst Should Be Careful When Evaluating a Ratio Analysis

question 15

Multiple Choice

The analyst should be careful when evaluating a ratio analysis that

• A) pre-audited statements are used.
• B) the dates of the financial statements being compared are the same time.
• C) neither A nor B.
• D) both A and B.

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Definitions:

Dishabituation

The renewal of response or attention to a stimulus after habituation has occurred, typically due to the introduction of a new or changed stimulus.

Metamemory

Knowledge about memory.

General Knowledge

Information on a wide range of subjects that is acquired through education and experience, not specialized in any specific field.

Represent Objects

The cognition to maintain, manipulate, or recreate the image or idea of something in the mind, despite its absence in the immediate environment.