One ratio result on its own is meaningless unless it can be compared to an appropriate yardstick or benchmark.An appropriate benchmark would be
A)all the options are appropriate benchmarks
B)industry averages
C)other entities in the same industry
D)the entity's ratios over time

Question

Quizplus · Accepted Answer

Comparing ratios to industry averages, other entities in the same industry, and the entity's own historical ratios are all appropriate benchmarks to assess performance.

One Ratio Result on Its Own Is Meaningless Unless It