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Comparing entity financial ratios with industry ratios

Response to the following problem:

When comparing entity financial ratios with industry ratios:

Answer It should be assumed that the data result from the consistent application of alternative accounting methods. Relative values at a point in time may not be significant. Relates dividends paid to the entity's assets. Entity ratios should not be compared with industry ratios. .

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Financial Accounting: Comparing entity financial ratios with industry ratios

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