Which of the Following Statements About Financial Statements Is Incorrect

question 86

Multiple Choice

Which of the following statements about financial statements is incorrect?

• A) The net margin ratio is a profitability ratio.
• B) The current ratio is a liquidity ratio.
• C) The debt to assets ratio is a liquidity ratio.
• D) The dividend yield is a stock market ratio.

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Definitions:

Bell-shaped Distribution

A graphical representation of data where the peak of the curve represents the most common occurrence, tapering off symmetrically on both sides, typical of a normal distribution.

Normal Curve

Also known as the bell curve, it is a graphical representation of a normal distribution of data where most observations cluster around the central peak and taper off symmetrically towards either end.

Extreme Scores

Values or outcomes in statistical data that are significantly higher or lower than the majority of the data set, often influencing the overall analysis and interpretations.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, such as the mean, median, or mode.