To Be Useful,a Ratio Must Be Compared with the Same

question 50

True/False

To be useful,a ratio must be compared with the same ratio from previous periods,compared with ratios of other companies in the same industry,or compared with industry averages.

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Definitions:

Securities

Securities are financial instruments that represent ownership positions in publicly traded corporations, creditor relationships with governmental bodies or corporations, or rights to ownership as represented by an option.

Capital

A financial asset or the value of financial assets owned by a business or individual, including cash, investments, and property.

Wrongful Discharge

The illegal termination of an employee's contract or employment against the terms of the contract or under laws protecting employees.

Progressive Discipline

A step-by-step approach used by employers to address employee performance problems or misconduct, increasing in severity if the issues persist.