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

Multiple Choice

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/are possible standard(s) ?

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) All of the above are possible standards.