Dissimilar year ends will have no impact on the results of ratios.

Question

Quizplus · Accepted Answer

If year ends are dissimilar, it may lead to inaccuracies in the calculation of ratios as the financial data may not be comparable between two different time periods. For example, if a company's fiscal year ends in June 2019 and in July 2020, comparing and analyzing financial ratios for these periods may not provide an accurate picture of the company's performance due to changes in economic conditions, business operations, and other factors. Therefore, dissimilar year ends can have an impact on the results of ratios.

Dissimilar Year Ends Will Have No Impact on the Results