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Which of the following statements regarding ratio analysis is INCORRECT? Select one: O a. Many large firms operate different divisions in different industries, and this
Which of the following statements regarding ratio analysis is INCORRECT? Select one: O a. Many large firms operate different divisions in different industries, and this makes it hard to develop a meaningful set of industry benchmarks for these types of firms. O b. Firms within the same industry may adopt different accounting techniques which make it difficult to compare financial ratios. c. Ratio analysis facilitates comparisons by standardizing numbers. d. Inflation factor has no impact on the ratio analysis for one firm over time or a comparative analysis of firms of different ages. e. Two firms with similar physical assets and sales could have significantly different ROAs because companies with assets that were purchased earlier will reflect lower asset values than those that purchased assets later at inflated prices
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