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 options are correct.

Question

Quizplus · Accepted Answer

Agencies may have different policies regarding what items are included in their calculations of financial ratios, leading to inconsistencies when comparing ratios prepared by different agencies.

One Problem with Comparing Financial Ratios Prepared by Different Reporting