Explain why ratios that compare an income statement account with a balance sheet account should express the balance sheet account as an average of the beginning and ending balances ...

We measure income statement accounts over a period of time like a ...

Explain why ratios that compare an income statement account with a balance sheet account should express the

Question:

Explain why ratios that compare an income statement account with a account should express the account as an average of the beginning and ending balances.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...