Which of the following is a limitation related to the usage of ratios when reviewing a firm's performance?
A) Ratios may change with economic conditions or technology.
B) Ratios may be similar for companies of different sizes.
C) Some ratios are percentages while other are multiples.
D) Ratios are usually calculated using end-of-period balances which may not be typical.
Correct Answer:
Verified
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Q122: Discuss the limitations of ratio analysis.
Q123: A serious pitfall in the interpretation of
Q124: Differences in accounting practices limit the use
Q125: Industry averages indicate what is typical, but
Q126: Which of the following is NOT a
Q128: Which of the following statements is FALSE?
A)
Q129: Companies chosen for benchmarks should be of
Q130: Analysts may choose different companies for peer
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