Accounting 0452 · IGCSE · Inter-firm comparison

Inter-firm comparison — practice question

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?

  • AThe businesses buy from different suppliers.
  • BThe businesses have different selling prices.
  • CThe businesses present their ledger accounts differently.
  • DThe businesses use different accounting policies.

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