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Cash flow

Maneesh 30 April 2020 at 14:42 PM

When a balance sheet amount is related to an income statement amount in computing a ratio
A) The balance sheet amount should be converted to an average for the year.
B) Comparisons with industry ratios are not meaningful.
C) The income statement amount should be converted to an average for the year.
D) Both amounts should be converted to market value.

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FACULTY 14 May 2020 at 03:42 PM

The balance sheet amount should be converted to an average for the year.(option A)

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