Different accounting practices will not have an impact on the comparative ratio analyses of different firms.
Answer the following statement true (T) or false (F)
False
Different accounting practices can distort comparisons. Different inventory valuation and depreciation methods can affect the financial statements. See 2-4: Uses and Limitations of Ratio Analysis
You might also like to view...
What were special purpose entities (SPEs) and what were their advantages?
What will be an ideal response?
If a corporation were to choose between issuing a debenture, a mortgage bond, or a subordinated
debenture, everything else equal (such as coupon rate, maturity, etc.) which would sell for the greatest price? A) the mortgage bond B) the subordinated debenture C) the debenture D) All of the above types of bonds would sell for the same price.
DRGs (demographically restricted groupings) result from a statistical procedure and predict illness based on racial and socioeconomic group membership. Use of DRGs is under attack by minority activists as an example of racial profiling.
Answer the following statement true (T) or false (F)
A data processing facility may depart in varying degrees from the
centralized data processing organization by implementing a DDP strategy. Indicate whether the statement is true or false