Which of the Following Statements Is True

question 63

Multiple Choice

Which of the following statements is true?

• A)Because gross profit percentages are so consistent from period to period they are not very useful for analyzing one company over time.
• B)Because gross profit percentages are so variable across industries they are most useful in comparing companies from different industries.
• C)Because gross profit percentages are so variable across industries they are more useful in analyzing one company over time.
• D)Because gross profit percentages are so consistent across industries they are most useful in comparing companies from different industries.

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Definitions:

Thrust Fault

A type of geological fault where one block of the earth's crust is pushed up and over another, typically at a low angle, due to compressional forces.

Normal Fault

A normal fault is a type of fault where the hanging wall slides downward relative to the footwall due to tensional forces.

Sedimentary Layers

Strata or layers of rock that have been formed from sediment deposition over vast periods of time.

Block Diagram

A diagram that portrays in three dimensions the shape of the land surface and the subsurface distributions of rock units, folds, faults, and other geologic features.