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In Order to Understand If the Results of Ratio Calculations

Question 315

Multiple Choice

In order to understand if the results of ratio calculations indicate a financially strong company, the results


A) should be compared to other firms in the same industry.
B) are compared to same size firms in the same geographic region of the country.
C) are compared to the norms established by generally accepted accounting principles.
D) are compared to the largest firms in the country.

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