After financial ratios are calculated,the results should be compared to any of the following except
A)The same indicator from prior years.
B)Budgeted information for the government for the upcoming year.
C)A comparative benchmark value,such as those from Moody's Medians.
D)Any credit market or other red flag indicators.

Question

Quizplus · Accepted Answer

Financial ratios should be compared to prior years, comparative benchmark values, and credit market or other red flag indicators. However, comparing results to budgeted information for the government for the upcoming year is not necessary since budgeted information may not accurately reflect the actual financial performance of the organization.

After Financial Ratios Are Calculated,the Results Should Be Compared to Any