Question
Which statement regarding general rules of ratio analysis is most accurate? When computing ratios that include balance sheet items in the numerator or denominator, one
Which statement regarding general rules of ratio analysis is most accurate?
When computing ratios that include balance sheet items in the numerator or denominator, one should use the average of the balance sheet items for the current and past time period. | ||
When computing ratios that include income statement items in the numerator only, one should not use the average of the income statement items for the current and past time period. | ||
When computing ratios that include income statement items in the numerator or denominator,one should use the average of the income statement items for the current and past time period. |
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