Each of the following is true of successful financial ratio analysis EXCEPT ____. a. ratios must be used in conjunction with other data to obtain meaningful information b. ratios are meaningful only when compared to a standard c. some industries use special ratios that are unique to the activities of firms in those industries d. a single ratio is all that is needed to indicate specific areas of weakness that must be addressed
Each of the following is true of successful financial ratio analysis EXCEPT ____. a. ratios must be used in conjunction with other data to obtain meaningful information b. ratios are meaningful only when compared to a standard c. some industries use special ratios that are unique to the activities of firms in those industries d. a single ratio is all that is needed to indicate specific areas of weakness that must be addressed
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter15: Ratio Analysis (ratioa)
Section: Chapter Questions
Problem 3R: a. What information does a comparison of the current ratio and acid test ratio provide? b. Is the...
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Question
Each of the following is true of successful financial ratio analysis EXCEPT ____.
a. |
ratios must be used in conjunction with other data to obtain meaningful information
|
|
b. |
ratios are meaningful only when compared to a standard
|
|
c. |
some industries use special ratios that are unique to the activities of firms in those industries
|
|
d. |
a single ratio is all that is needed to indicate specific areas of weakness that must be addressed
|
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