Which of the following is least likely a limitation of financial ratios
A: Data on comparable firms are difficult to acquire.
B: Determining the target or comparison value for a ratio requires judgment.
C: Different accounting treatments require the analyst to adjust the data before comparing ratios.
A: Data on comparable firms are difficult to acquire.
B: Determining the target or comparison value for a ratio requires judgment.
C: Different accounting treatments require the analyst to adjust the data before comparing ratios.
举一反三
- Which of the following statements about inventory accounting is least accurate（） A: If a U. S. firm uses LIFO for tax reporting it must use LIFO for financial reporting. B: During periods of rising prices, FIFO based current ratios will be smaller than LIFO based current ratios. C: U.S. GAAP rules require the use lower of cost or market when reporting inventories.
- Among the following ratios, which is used for long-term solvency analysis? ( ) A: current ratio B: Times-interest-earned ratio C: Operating cycle D: Book value per share
- Which of the following statements is most accurate? ( ) A: Receivable- and inventory-based activity ratios also shed light on the firm's use of financial leverage. B: Receivable- and inventory-based activity ratios also shed light on the "liquidity" of these current assets. C: Coverage ratios also shed light on the "liquidity" of these current ratios. D: Liquidity ratios also shed light on the firm's use of financial leverage.
- An analyst makes the appropriate adjustments to the financial statements of retail companies that are lessees using a substantial number of operating leases. Compared to ratios computed from the unadjusted statements, the ratios computed from the adjusted statements would most likely be higher for:（） A: the debt-equity ratio but not the interest coverage ratio. B: the interest coverage ratio but not the debt-equity ratio. C: both the debt-equity ratio and the interest coverage ratio.
- Which of the following is NOT a limitation to financial ratio analysis（） A: Differences in international accounting practices. B: The use of alternative accounting methods. C: A firm that operates in only one industry.