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Why is the price-to-sales ratio considered a reliable measure of valuation?
  • a)
    Sales figures are difficult to manipulate
  • b)
    Sales figures are easily manipulated
  • c)
    Sales figures are not relevant for valuing a company
  • d)
    Sales figures are not included in financial statements
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Why is the price-to-sales ratio considered a reliable measure of valua...
The price-to-sales ratio is considered a reliable measure of valuation because sales figures are difficult to manipulate compared to other income statement items, such as earnings. While earnings can be influenced by accounting rules and adjustments, sales figures are typically more reliable indicators of a company's performance. However, it is important to analyze other factors and metrics in conjunction with the price-to-sales ratio to get a complete picture of a company's valuation.
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Why is the price-to-sales ratio considered a reliable measure of valuation?a)Sales figures are difficult to manipulateb)Sales figures are easily manipulatedc)Sales figures are not relevant for valuing a companyd)Sales figures are not included in financial statementsCorrect answer is option 'A'. Can you explain this answer?
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Why is the price-to-sales ratio considered a reliable measure of valuation?a)Sales figures are difficult to manipulateb)Sales figures are easily manipulatedc)Sales figures are not relevant for valuing a companyd)Sales figures are not included in financial statementsCorrect answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Why is the price-to-sales ratio considered a reliable measure of valuation?a)Sales figures are difficult to manipulateb)Sales figures are easily manipulatedc)Sales figures are not relevant for valuing a companyd)Sales figures are not included in financial statementsCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why is the price-to-sales ratio considered a reliable measure of valuation?a)Sales figures are difficult to manipulateb)Sales figures are easily manipulatedc)Sales figures are not relevant for valuing a companyd)Sales figures are not included in financial statementsCorrect answer is option 'A'. Can you explain this answer?.
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