Engineering Economics

Pick up the correct statement from the following:

  • A. The financial ratio summarizes some aspect of the firm’s financial condition at the time of preparing a balance sheet
  • B. Both the numerator and denominator of financial ratios come directly from the balance sheet
  • C. Income statement ratios compare a flow item from the income statement to another flow item form the income statement
  • D. All of these
Answer: Option D.

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