Which of the Following Is NOT a Reason Why Financial

question 51

Multiple Choice

Which of the following is NOT a reason why financial analysts use ratio analysis?

• A) Ratios help to pinpoint a firm's strengths.
• B) Ratios restate accounting data in relative terms.
• C) Ratios are ideal for smoothing out the differences that may exist when comparing firms that use different accounting practices.
• D) Some of a firm's weaknesses can be identified through the usage of ratios.

---

Definitions:

John Mitchell

An American labor leader and president of the United Mine Workers of America (1898-1908), known for his role in the labor movement and efforts to improve workers' rights.

Industrial Liberty

The notion of freedom within the context of industrial development, often referring to labor rights, economic opportunities, and the ability to innovate and compete in a market economy.

Ludlow Massacre

An event in 1914 where a violent conflict between striking coal miners and the Colorado National Guard resulted in numerous deaths, including women and children.

Rockefeller-Owned Companies

Enterprises and corporations that were owned or controlled by John D. Rockefeller, most famously including Standard Oil, which played a significant role in the development of the U.S. oil industry.