Which of the following statements about a ratio is NOT true?
A) If the financial statements are materially misstated,then ratios will be misleading.
B) A ratio is always expressed as a percentage.
C) A ratio can be interpreted and used meaningfully only with a good understanding of the company.
D) Ratios are indicators that can be interpreted.

Question

Quizplus · Accepted Answer

A ratio can be expressed as a percentage, a decimal, or a fraction, depending on the context and the users' preference. Therefore, it is not always true that a ratio is expressed as a percentage.

Which of the Following Statements About a Ratio Is NOT