Benefits of using ratio analysis include all of the following except:
A) Ratios are usually easy to compute.
B) It is always clear what the optimal ratio is for a company.
C) Ratios allow analysts to look at one figure in the financial statements in relation to a second one.
D) Ratios can be used to compare companies that report results in different currencies.

Question

Quizplus · Accepted Answer

It is not always clear what the optimal ratio is for a company as it can vary based on industry, size, and other factors.

Benefits of Using Ratio Analysis Include All of the Following