If It Were Not for the Existence of an "Absolute

question 90

Multiple Choice

If it were not for the existence of an "absolute zero," ratio data would be considered the same as _______.

• A)interval level data
• B)ordinal level data
• C)nominal level data
• D)ratio level data
• E)relative level data

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories (assets, liabilities, and equity) is represented as a proportion of the total account.

Profitability Analysis

The process of evaluating the ability of a business to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.

Cost Of Goods Sold

The cost of goods sold is the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from total sales revenue.