Which of the Following Statements Regarding Ratio Analysis Is Incorrect

question 58

Multiple Choice

Which of the following statements regarding ratio analysis is incorrect?

• A) Ratio analysis is a specific form of horizontal analysis.
• B) There are many different ratios available for evaluating a firm's performance.
• C) Some ratios involve an account from the balance sheet and one from the income statement.
• D) Ratio analysis involves making comparisons between different accounts in the same set of financial statements.

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Definitions:

Tariffs

Taxes on foreign products that discourage imports.

Dumping Activities

Practices where a country or company exports a product at a price lower than the price it normally charges in its own home market, often considered unfair competition.

Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports over a specific period, indicating a positive balance of trade.

Subsidy

Financial assistance granted by the government or a public body to support businesses, reduce costs, and encourage economic activities.