With Ratio Analysis,when an Income or Statement of Cash Flows

Multiple Choice

With ratio analysis,when an income or statement of cash flows item is compared to a balance sheet item:

A) the year-end balance of the balance sheet item should be used
B) the average of the beginning and ending year values should be taken for the balance sheet item rather than just using the year-end value.
C) the beginning balance of the balance sheet item should be used
D) none of the options is correct