Which of the Following Statements About a Ratio Is NOT

question 45

Multiple Choice

Which of the following statements about a ratio is NOT true?

• A) If the financial statements are materially misstated,then ratios will be misleading.
• B) A ratio is always expressed as a percentage.
• C) A ratio can be interpreted and used meaningfully only with a good understanding of the company.
• D) Ratios are indicators that can be interpreted.

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Definitions:

Unemployment

The situation when individuals who are actively seeking work are unable to find employment.

Sacrifice Ratio

The cost of reducing inflation in terms of the amount of output or gross domestic product that is foregone.

Inflation

The tempo at which the comprehensive price tags for goods and services grow, depleting the shopping power.

Unemployment

The situation when individuals who are capable of working and are actively seeking a job are unable to find employment.