The needs of service-oriented companies in analyzing financial statements differ from those of product-oriented companies. Why is this true? Give an example of a ratio that is meaningless to a service business.

Chapter 13, Questions #24

The needs of service-oriented companies in analyzing differ from those of product-oriented companies. Why is this true? Give an example of a ratio that is meaningless to a service business.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...