Which of these statements is false?
a. A ratio can be computed from any pair of numbers.
b. Given the large quantity of variables included in financial statements, a very long list of meaningful ratios can be derived.
c. Comparing ratios computed from income statement and balance sheet numbers can create difficulties due to the timing of the financial statements.
d. Financial ratios are usually expressed in percent or times.
e. In vertical analysis, a figure from this year's statement is compared with a base selected from the prior statement.
E
You might also like to view...
Which of the following businesses is most likely to use process costing?
A) chemical plant B) architectural firm C) dentist's office D) manufacturer of fine furniture
The default scripting language for Netscape and Internet Explorer is ________
a) JavaScript b) Perl c) ECMAScript d) Python
Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales$36,480,000 Net operating income$2,808,960 Average operating assets$8,000,000 The company's minimum required rate of return 16%The division's return on investment (ROI) is closest to:
A. 2.7% B. 6.3% C. 160.1% D. 35.1%
A company's prime costs total $3,000,000 and its conversion costs total $7,000,000. If direct materials are $1,000,000 and factory overhead is $5,000,000, then direct labor is:
A) $4,000,000. B) $14,000,000. C) $2,000,000. D) $1,000,000. E) $3,000,000.