Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.
Each question is worth 2 marks.
Which of the following statements is true?
A The interpretation of an entity’s financial statements using ratios is only useful for potential investors
B Ratios based on historical data can predict the future performance of an entity
C The analysis of financial statements using ratios provides useful information when compared with previous performance or industry averages
D An entity’s management will not assess an entity’s performance using financial ratios
Answer：
C
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