Multiple Choice
When using ratio data for comparison to other companies,analysts should:
A) not assume that all companies in the industry are in direct competition.
B) not interpret the data as a way of determining which companies will survive and outperform others.
C) only use data from one time period.
D) use industry averages,rather than individual companies,for the comparison.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: Unlike solvency rates,liquidity ratios relate to the
Q13: A P/E ratio is calculated in the
Q14: Match the term and the definition.Not all
Q15: A current ratio of 2.5 means that
Q16: How competitors calculate depreciation is most likely
Q18: The P/E ratio indicates how much investors
Q19: Company X has net sales revenue of
Q20: Net income was $364,000 in 2017
Q21: For financial information to be useful
Q22: A times interest earned ratio of 11