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:

Cohort

A group of individuals sharing a common characteristic, typically shared within a defined time frame, often used in studies to compare changes over time or across different groups.

Interests

Personal likes, preferences, or areas of particular focus or enthusiasm an individual has.

Sequential Design

A research methodology that combines elements of both cross-sectional and longitudinal designs to study changes within a population over time.

Cross-sectional Comparisons

Cross-sectional comparisons involve looking at data from a population at one specific point in time to identify patterns and relationships.