Which of the following statement i s NOT accurate? Financial statements serve a number of purposes:
A)from a lender's perspective they often form the basis for covenant restrictions.
B)financial ratios are useful for planning and budgeting purposes
C)financial ratios are only useful when using book values because market values change almost continuously and distort manager's intentions.
D)the ROE measure helps us to understand how well we are rewarding our investors.

Question

Quizplus · Accepted Answer

This statement is not accurate. Financial ratios can be useful for analyzing financial performance regardless of whether they are based on book values or market values. In fact, market-based ratios like price-to-earnings (P/E) ratio and market-to-book (M/B) ratio can provide additional insights into a company's financial health.

Which of the Following Statement I S NOT Accurate? Financial