The most acceptable method of evaluating the financial statements of a firm is to compare the firm's current:
-Financial ratios to the firm's historical ratios.
-Financial statements to the financial statements of similar firms operating in other countries.
-Financial ratios to the average ratios of all firms located within the same geographic area.
-Financial statements to those of larger firms in unrelated industries.
-Financial statements to the projections that were created based on Tobin's Q.
Answer: Financial ratios to the firm's historical ratios