One problem with comparing financial ratios prepared by different reporting agencies is
A)some agencies receive financial information later than others.
B)agencies vary in their policies as to what is included in specific calculations.
C)some agencies are careless in their reporting.
D)some firms are more conservative in their accounting practices.
E)none of the above.

Question

Quizplus · Accepted Answer

Different reporting agencies often have different policies as to what should be included in specific calculations. Therefore, comparing financial ratios prepared by different reporting agencies may not be accurate.

One Problem with Comparing Financial Ratios Prepared by Different Reporting