One simplifying characteristic of ratio analysis is that once we have created common size statements, the benchmarking of industry ratios becomes redundant because all industries have the same ratios when using common size values
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: Common size statements DO NOT equalize ratios across industries nor across time. Ratios do tend to differ from industry to industry and also over time, and the industry norms change.
Business
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Which of the following is not a characteristic of Treasury bonds?
A) Long-term debt securities B) Issued by the U.S. Treasury C) Exempt from federal tax D) Highly liquid
Business
Which of the following tax effects could not occur with the purchase and sale of a corporate bond?
A) Capital gain B) Capital loss C) Interest is taxed at ordinary rates. D) Interest is not taxable.
Business