Which of the following statements is most correct?
(a)-many large firms operate different di...
Which of the following statements is most correct?
(a)-many large firms operate different divisions in different industries, and this makes it hard to develop a meaningful set of industry benchmarks for these types of firms.
(b)-financial ratios should be interpreted with caution because there exist seasonal and accounting differences that can reduce their comparability.
(c)-financial ratios should be interpreted with caution because it may be difficult to say with certainty what is a "good" value. for example, in the case of the current ratio, a "good" value is neither high nor low.
(d)- ratio analysis facilitates comparisons by standardizing numbers.
(e)-all of the statements above are correct.
Answers: 1
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