Which of the following statements is true? Group of answer choices A)It is always preferable to compare a company's performance to industry-wide ratios rather than to use a competitor's ratios. B)Ratios compare items from the same financial statement. C)One of the advantages of ratio analysis is that it allows companies of different sizes to be compared. D)Comparing companies from different industries is made possible via ratios. E)None of the above
Which of the following statements is true? Group of answer choices A)It is always preferable to compare a company's performance to industry-wide ratios rather than to use a competitor's ratios. B)Ratios compare items from the same financial statement. C)One of the advantages of ratio analysis is that it allows companies of different sizes to be compared. D)Comparing companies from different industries is made possible via ratios. E)None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements is true?
Group of answer choices
A)It is always preferable to compare a company's performance to industry-wide ratios rather than to use a competitor's ratios.
B)Ratios compare items from the same financial statement.
C)One of the advantages of ratio analysis is that it allows companies of different sizes to be compared.
D)Comparing companies from different industries is made possible via ratios.
E)None of the above
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