Select one: a. Financial

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2Q: Financial ratio analysis is conducted by managers, equity investors, long-term creditors, and...
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Which of the following is NOT correct about the financial ratios?

Select one:
a. Financial ratios are based on the estimated values of balance sheet and income statement accounts.
b. Financial ratios can be viewed as equalizers, allowing for relative comparisons to be made.
c. Financial ratios are one of an analyst’s most powerful tools, converting financial statement information into a form that is easier to analyze.
d. The examination of financial ratios provides insights into how a firm has performed historically and how it is performing relative to its competitors and its industry.

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