Which of the following is/are limitations of ratio analysis?
a. use of acquisition cost for assets rather than current replacement cost or net realizable value
b. latitude firms have in selecting from among various generally accepted accounting principles
c. changes in many ratios correlate with each other
d. must recognize conditions that have changed between the periods being compared when comparing the size of a ratio between periods for the same firm
e. all of the above
E
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Federal income taxes withheld increase the employer's payroll tax expense
Indicate whether the statement is true or false
______ are short-term liabilities, which include wages payable and taxes payable, that change spontaneously as the firm's normal operations change.
A. Supplier credits B. Accruals C. Corporate bonds D. Notes payable E. Receivables
All of the following are basic features of the Immigration Reform and Control Act of 1986 EXCEPT that:
A. employers may not hire or continue to employ those who are not legally authorized to work in the United States. B. employers cannot be fined for failure to comply with verification rules. C. employers should do a self-audit of all I-9 forms, not just those of a particular ethnic group. D. employers must verify the identity and work authorization of every new employee.
A firm can reduce its cash conversion cycle by ________
A) increasing the average age of inventory B) increasing the average collection period C) increasing the operating cycle D) increasing the average payment period