Ratios should not be used to compare two companies in different industries since wide variations across industries can occur.But even within an industry, sometimes comparisons can be problematic.Which of the following is/are a reason(s) for concern?
A) Methods of calculating ROE may differ between analysts
B) Company choice between weighted average and FIFO inventory valuations
C) Companies are based in different countries
D) All of these are reasons for concern.
Correct Answer:
Verified
Q1: What is a pure financial ratio?
A)A financial
Q2: Return on equity (ROE)can be calculated by:
Q4: If two firms, GUW and BFG, have
Q5: What problem arises for comparing Exxon Mobil
Q6: Igor the intern has obtained the following
Q7: Why is the DuPont system used by
Q8: Which of the following people would be
Q9: Financial ratios are used to perform an
Q10: Which one of the following is TRUE?
A)Stand-alone
Q11: Igor the intern has obtained the following
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents