Which Statement Concerning Financial Ratios Is Not True

question 57

Multiple Choice

Which statement concerning financial ratios is not true?

• 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:

Platelet Plug

A clot formed by platelets in response to vascular injury to prevent or stop bleeding.

Pigment

A substance that provides color to other materials, such as paint or the cells in our body.

Red Blood Cell

A type of blood cell that is primarily responsible for transporting oxygen from the lungs to the rest of the body, also known as an erythrocyte.

Rhesus Antigen

A protein substance found on the surface of red blood cells in most people, determining the positive or negative aspect of blood type and important in blood transfusions.