When comparing one company’s ratios to another company’s ratios or to the industry average values, how is the interpretability of the various

When comparing one company’s ratios to another company’s ratios or to the industry average values, how is the interpretability of the various financial ratios affected by the mixed attribute valuation model that is used in U.S. GAAP? Is the interpretability likely to be more affected for certain financial ratios than it might be for others? Which ones are likely to be most affected? Explain.

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