Which of the Following Statements Regarding Ratio Analysis Is Not

question 23

Multiple Choice

Which of the following statements regarding ratio analysis is not true?

• 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:

Salivary Gland

Exocrine glands located in the mouth that produce saliva, aiding in digestion and oral hygiene.

Canine

A tooth located between the incisors and premolars, pointed in shape and used for tearing food.

Premolar

A type of tooth located between the canine teeth and molars in the mouth, used for crushing and grinding food.

Incisor

A front tooth specialized in cutting food, found in both the upper and lower jaws of mammals.