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Title: Finance

Essay Details:

Subject: Business
Author: Juan S
Date: July 16, 2012
Level: University
Grade: A
Length: 3 / 755

Essay text:

When comparing entity financial ratios with industry ratios: a. it should be assumed that the data result from the consistent application of alternative accounting methods. b. Relative values at a point in time may not be significant. c. Trend comparisons may not be valid because alternative accounting methods may have been used. d. Entity ratios should not be compared with industry ratios. 3. The return on investment measure of performance: a. is not as important a measure of management effectiveness as the amount of net income. b. Relates dividends paid to the entity's assets. c. Is calculated using net income as the amount of return? d...

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