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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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