Which of the following statements about a ratio is NOT true?
A) A ratio has little meaning on its own.
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 is the relationship between two values and is usually expressed in the form of a fraction or a decimal. It can be used to compare different aspects of a company's financial performance. Ratios are indicators that can be interpreted, but they must be understood in context and with a good understanding of the company. However, a ratio is not always expressed as a percentage and can be in any format depending on the type of ratio being used.

Which of the Following Statements About a Ratio Is NOT