What is an advantage of using ratio analysis in comparing financial statements from different countries?
A)Ratios are expressed as percentages, making currency differences irrelevant to the analysis.
B)Ratios highlight the holding gains or losses related to currency translation.
C)Purchasing power gains and losses from currency translation show up clearly in ratio analysis.
D)Comparing business ratios across countries removes the effect of economic conditions and business culture.

Question

Quizplus · Accepted Answer

Ratios are expressed as percentages, which standardizes the analysis regardless of currency differences between different countries. This allows for a more fair and accurate comparison of financial statements.

What Is an Advantage of Using Ratio Analysis in Comparing