Mastering Financial Ratios
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Questions and Answers

Which group of people typically use financial ratios?

  • Customers
  • Accountants
  • Lenders, financial analysts, and investors (correct)
  • Employees

    • When analyzing financial statement data, what is an important factor to consider?

  • The company's marketing strategy
  • The company's location
  • The company's employee turnover
  • The underlying data quality (correct)

    • What is one limitation of financial ratios?

  • They do not account for inflation (correct)
  • They cannot be compared to industry averages
  • They are not part of the accounting cycle
  • They are only relevant for large companies

    • When comparing financial ratios, what can be used as a benchmark?

    <p>All of the above</p> Signup and view all the answers

    Why is it sometimes difficult to categorize companies into a particular industry?

    <p>Companies often operate in multiple industries</p> Signup and view all the answers

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