Financial statement ratios alone provide direct indicators of good or poor management.

Question

Quizplus · Accepted Answer

Financial statement ratios provide useful information regarding a company's financial performance, but they should not be the only factor used to evaluate management. Other factors such as industry trends, market competition, and company strategy should also be considered. Additionally, financial ratios can be manipulated or skewed, so it is important to analyze them in conjunction with other information rather than relying solely on them.

Financial Statement Ratios Alone Provide Direct Indicators of Good or Poor