Which of the following statements are true
A) When comparing ratios to industry average, a ratio equal to the industry average is not necessarily good.
B) Trend analysis compares the firm to other same- industry firms.
C) It is easy to find competitors to use as benchmarks.
D) There are standards for acceptable ratios that apply to all industries.

Question

Quizplus · Accepted Answer

A ratio equal to the industry average may not always be good because it does not account for the unique circumstances or strategies of a firm. Different firms may have different objectives, and a ratio that is average might not align with a firm's specific goals or indicate areas needing improvement.

Which of the Following Statements Are True