Which of the following is true about ratios and absolute numbers used to make comparisons between financial
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Question:
Which of the following is true about ratios and absolute numbers used to make comparisons between financial statements of business considered for investment or credit
I). Absolute numbers are more useful than ratios in comparing companies of dissimilar size.
II). Ratios allow comparisons in relative terms.
III). Context for comparisons of ratios or absolute numbers is provided by historical ratios or amounts or industry averages.
IV). Absolute changes usually provide better measures of comparisons.
Related Book For
Payroll Accounting 2017
ISBN: 978-1259572180
3rd edition
Authors: Jeanette Landin, Paulette Schirmer
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