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Each of the Following Is True of Successful Financial Ratio

Question 38

Multiple Choice

Each of the following is true of successful financial ratio analysis EXCEPT ____.


A) some industries use special ratios that are unique to the activities of firms in those industries
B) a single ratio is all that is needed to indicate specific areas of weakness that must be addressed
C) ratios are meaningful only when compared to a standard
D) ratios must be used in conjunction with other data to obtain meaningful information

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