It is always better to use the average figures from the statements of financial position when calculating efficiency ratios.

Question

Quizplus · Accepted Answer

Using average figures from the statements of financial position provides a more accurate representation of the company's financial performance over a period of time, rather than just relying on the figures from one specific date. This is especially important when calculating efficiency ratios, which measure how effectively a company is utilizing its resources over a period of time.

It Is Always Better to Use the Average Figures from the Statements