Financial ratios as such have little, if any, usage values and must be viewed against certain norms to give them usage values. Which one of the following represents a comparison which is significant in this regard?

Question

Answer

A comparison of the financial ratios with other financial ratios of the same period.

Answer

A comparison of the financial ratios of the business to those of other industries in the country.

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A comparison of the financial ratios of the business with the norms for other industries on an international level.

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A comparison of the current financial ratios with the corresponding ratios in the past.

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Financial ratios as such have little, if any, usage values and must be viewed ag...

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