The Incorrect Statement Concerning Financial Ratios Is

question 50

Multiple Choice

The incorrect statement concerning financial ratios is:

• A)A ratio expresses the relationship between two figures appearing in the financial statements.
• B)Ratios are easy to interpret but difficult to calculate.
• C)Ratios adjust for scale of operations and allow comparisons between businesses of different sizes.
• D)None of the above, i.e., all are true statements.

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Definitions:

Obverse

The statement formed by negating both the subject and predicate of a given categorical proposition and changing the quality from affirmative to negative, or vice versa.

Proposition

In philosophy, a content of thought expressed in language or symbols that can be analyzed as either true or false.

Converse

In logic, a statement formed by reversing the antecedent and consequent in a conditional statement; if the original statement is "If P, then Q," the converse is "If Q, then P."

Proposition

A pronouncement that exhibits a view or judgment.