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.

Question

Quizplus · Accepted Answer

Different reporting agencies may have different policies as to what they include or exclude from the financial ratio calculations. This can result in discrepancies and make the ratios difficult to compare.

One Problem with Comparing Financial Ratios Prepared by Different Reporting