Many Ratios Require an Average Be Used for the Balance

Multiple Choice

Many ratios require an average be used for the balance sheet numbers because the

A) income statement refers to a point in time.
B) accountants may have made errors in the financial statements.
C) balance sheet numbers are at a point in time and are being compared to an income statement number that covers a period of time.
D) income statement numbers represent a point in time and are being compared to a balance sheet number that covers a period of time.