To Compare Companies of Different Sizes,investors Need Some Standard Profitability

question 153

True/False

To compare companies of different sizes,investors need some standard profitability ratios.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide how financial statements are prepared and presented globally.

Accounting Treatments

Methods or procedures applied in preparing and presenting financial statements, based on guidelines from accounting standards.

Credit Risk

The potential for loss due to a borrower's failure to make payments on any type of debt.

Principal

The original amount of a debt or investment before interest.