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:

Budget Control

Budget control is a financial management tool used to monitor and regulate the expenses and revenues of an organization or government to prevent overspending.

Nineteenth-century

The period from 1801 to 1900, marked by significant social, economic, and political changes, including the Industrial Revolution and the rise of nationalism.

German Middle Class

Social stratum found in Germany, typically including small business owners, professionals, engineers, and civil servants, characterized by a moderate level of income and education.