Financial Ratios

question 10

Multiple Choice

Financial ratios:

• A) help financial statement users to evaluate the financial characteristics of companies by putting the large dollar amounts reported in financial statements into relative terms for comparison purposes.
• B) provide for a more meaningful analysis when the trends of financial ratios for a company are compared to the industry average trends over a period of time.
• C) are required reporting disclosures in the notes to the consolidated financial statements of U.S. companies that are regulated by the SEC.
• D)All of the above statements are true.
• E) A and B are true, but C is not true.

---

Definitions:

1914

Generally references the year notable for the start of World War I, but without additional context, it doesn't apply to a specific key-term related to law or policy.

Enacted

Made into law by official legislative action.

Horizontal Merger

A business consolidation that occurs between firms that operate in the same industry.

Vertical Merger

A business integration strategy where companies within the same supply chain but at different stages of production merge.