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Ratios help us make better comparisons between the operations of firms that differ in size and other aspects. True or false

1 Answer

6 votes

Answer:

True

Step-by-step explanation:

  • A ratio is a better way to make a qualitative and a quantitative assessment and to draw comparisons and to estimate the difference between the companies liquidity, operational efficiency, and the profitability by comparing the comparing the information that is contained in the financial statements.
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