Statements is correct concerning ratio analysis

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Reference no: EM131321397

1. Investors paid a total of $200,000 to acquire common stock in a firm. What is the book value of that firm?

more than $200,000

$200,000

less than $200,000

The book value cannot be determined from the provided information.

2. Which one of the following statements is correct concerning ratio analysis?

A) Ratios cannot be used for comparison purposes over extended periods of time.

B) Ratios do not address the problem of size differences among firms.

C) Only a very limited number of ratios can be used for analytical purposes.

D) Each ratio has a specific formula that is used consistently by all analysts.

E) A single ratio is often computed differently by different individuals.

Reference no: EM131321397

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