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Which of the following statements about financial statement analysis is most correct ? A The current ratio measures liquidity. B Du Pont analysis is based

Which of the following statements about financial statement analysis is most correct?

A The current ratio measures liquidity.
B Du Pont analysis is based on the fact that return on equity (ROE) can be expressed as the sum of three other ratios (Ratio 1 + Ratio 2 + Ratio 3).
C It is relatively easy to interpret a ratio in the absence of comparative and trend data.
D Both a. and b. are correct.
E Answers a., b., and c. are all correct.

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