Ratios Provide Little Information Unless the Analyst Places Them in a Context.After

Ratios provide little information unless the analyst places them in a context.After calculating the ratios, the analyst must compare them with some standard.Which of the following is not a possible standard?

A) The planned ratio for the period.
B) The corresponding ratio during the preceding period for the same firm.
C) The corresponding ratio for a similar firm in the same industry.
D) The average ratio for other firms in the same industry.
E) The corresponding ratio during the succeeding period for the same firm.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free