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CTP · Question #447

(Topic 5) All of the following are advantages of using traditional financial ratios for analysis EXCEPT:

The correct answer is B. they usually reflect accounting rather than economic values. See the full explanation below for the reasoning.

Question

  • (Topic 5)

All of the following are advantages of using traditional financial ratios for analysis EXCEPT:

Options

  • Athey can easily be computed from the information found in publicly available financial
  • Bthey usually reflect accounting rather than economic values.
  • Cthey can be used to view historical trends and availability over time.
  • Dthey allow comparisons to be made between like companies.

How the community answered

(25 responses)
  • A
    4% (1)
  • B
    80% (20)
  • C
    4% (1)
  • D
    12% (3)

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