The incorrect statement concerning financial ratios is:
A)A ratio expresses the relationship between two figures appearing in the financial statements.
B)Ratios are easy to interpret but difficult to calculate.
C)Ratios adjust for scale of operations and allow comparisons between businesses of different sizes.
D)None of the above, i.e., all are true statements.

Question

Quizplus · Accepted Answer

Ratios may be difficult to interpret for some users due to differences in interpretation or industry standards, but they are generally easy to calculate using information from financial statements.

The Incorrect Statement Concerning Financial Ratios Is