Which of these statements is false?
A)A ratio can be computed from any pair of numbers.
B)Given the large quantity of variables included in financial statements,a very long list of meaningful ratios can be derived.
C)Comparing ratios computed from income statement and balance sheet numbers can create difficulties due to the timing of the financial statements.
D)Financial ratios are usually expressed in percent or times.
E)In vertical analysis,a figure from this year's statement is compared with a base selected from the prior statement.

Question

Quizplus · Accepted Answer

Vertical analysis involves comparing a figure from the financial statement with a base figure from the same statement, not from a prior statement. It typically compares each line item to a base item within the same year's statement, such as total sales or total assets, to understand the relative proportion of each item.

Which of These Statements Is False