Which One of the Following Statements Is Correct Concerning Ratio

question 70

Multiple Choice

Which one of the following statements is correct concerning ratio analysis?

• A)A single ratio is often computed differently by different individuals.
• B)Ratios do not address the problem of size differences among firms.
• C)Only a very limited number of ratios can be used for analytical purposes.
• D)Each ratio has a specific formula that is used consistently by all analysts.
• E)Ratios can not be used for comparison purposes over periods of time.

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Definitions:

Cognitive Ability Test

An assessment designed to measure an individual's mental capacity, including memory, reasoning, understanding, and problem-solving skills.

Standard Error

A statistical term that describes the standard deviation of the sampling distribution of a statistic, often used to measure the accuracy with which a sample represents a population.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Standard Deviation

A statistical measurement that shows how much variation or dispersion exists from the average (mean), indicating how spread out the values in a data set are.