Inter-firm comparison

Ralph intends to compare the accounting ratios of his business with those of his brother’s business. What factor could stop Ralph from making a meaningful comparison?

May/June 2024

Ralph would like to compare the accounting ratios for his business with those of his brother’s business. What factor would stop Ralph from making a valid comparison?

May/June 2024

Which of the following is not a limitation of inter-firm comparison?

Oct/Nov 2021

Which of the following is not a limitation of inter-firm comparison?

Oct/Nov 2021

Ali owns a clothing shop and is comparing his accounting ratios with those of Hajar, who runs a comparable clothing shop. The information below is given. [Table provided: gross margin - Ali 45%, Hajar 20%; rate of inventory turnover - Ali 15 times, Hajar 20 times.] Which explanation fits these accounting ratios?

Oct/Nov 2025