Which of the following is not true?
A) Financial analysis can be fully standardized.
B) Effective analysis requires identification of the most appropriate ratios for the particular objective, as all ratios will not give the same information.
C) The output from financial analysis can often provide only general clues.
D) Some financial ratios will not be appropriate for firms of different sizes.

Question

Quizplus · Accepted Answer

Financial analysis cannot be fully standardized as different industries and companies may have different financial metrics and variables that must be considered. Therefore, customization is often necessary.

Which of the Following Is Not True