Ratios Provide Little Information Unless the Analyst Places Them in a Context.After

question 23

Multiple Choice

Ratios provide little information unless the analyst places them in a context.After calculating the ratios, the analyst must compare them with some standard.Which of the following is not a possible standard?

• A)The planned ratio for the period.
• B)The corresponding ratio during the preceding period for the same firm.
• C)The corresponding ratio for a similar firm in the same industry.
• D)The average ratio for other firms in the same industry.
• E)The corresponding ratio during the succeeding period for the same firm.

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Definitions:

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A theory in psychology that studies how thinking and reasoning develop with age, from infancy through adulthood.

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