The same financial ratios used to evaluate a firm's historical financial statement should be used to evaluate the pro forma financial statements.

Name: The same financial ratios used to evaluate a firm's historical financial statement should be used to evaluate the pro forma financial statements.
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Question

Quizplus · Accepted Answer

Using the same financial ratios to evaluate both historical and pro forma financial statements allows for consistency and comparability in the analysis of a firm's financial performance.

The Same Financial Ratios Used to Evaluate a Firm's Historical