Select one: a. Financial

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 10P
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Which of the following is NOT correct about the financial ratios?

Select one:
a. Financial ratios are based on the estimated values of balance sheet and income statement accounts.
b. Financial ratios can be viewed as equalizers, allowing for relative comparisons to be made.
c. Financial ratios are one of an analyst’s most powerful tools, converting financial statement information into a form that is easier to analyze.
d. The examination of financial ratios provides insights into how a firm has performed historically and how it is performing relative to its competitors and its industry.

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