After Financial Ratios Are Calculated,the Results Should Be Compared to Any

question 7

Multiple Choice

After financial ratios are calculated,the results should be compared to any of the following except

• A)The same indicator from prior years.
• B)Budgeted information for the government for the upcoming year.
• C)A comparative benchmark value,such as those from Moody's Medians.
• D)Any credit market or other red flag indicators.

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Definitions:

Negotiable Instruments

Written documents that guarantee the payment of a specific amount of money to the bearer or to a specific person, under certain conditions.

Fraud in the Inducement

A type of fraud that occurs when a person is deceived into entering into an agreement through misrepresentation of material facts.

Shelter Rule

In law, this rule allows a person who acquires goods from someone who did not have clear ownership to gain rightful ownership if the original seller had the power to transfer rights in the goods to a good faith purchaser.

Impostor Rule

A legal principle that holds a person pretending to be someone else liable for the deception if it results in harm or loss.