Identify at least three (3) ratios that could be manipulated to mislead investors and creditors regarding the company’s financial condition. Examine the motivation of management to manipulate the ratios identified.
*From the e-Activity, putting yourself in the role of an investor or creditor, suggest the ratios that you believe would provide you with the most important information needed to make accurate predictions about the company’s financial condition. Provide a rationale for your response.
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