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How Does the Use of Ratios Help the Financial Analyst

Question 23

Multiple Choice

How does the use of ratios help the financial analyst?


A) They are a necessary first step in developing per capita information
B) They help the analyst assess trends for the government itself and for comparing the trends with those with other governments
C) They simplify financial analysis by reducing the number of items to be analyzed
D) They show the dollar amount of change from one year to another for each item of revenue and expense, both for the entity studied and the reference group

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