Which of the following does not represent a problem with financial analysis?
A)Financial statement analysis is an art;it requires judgment decisions on the part of the analyst.
B)Financial analysis can be used to detect apparent liquidity problems.
C)There are as many ratios for financial analysis as there are pairs of figures.
D)Some industry ratio formulas vary from source to source.
E)Adequate detailed disclosure of how the industry ratios are computed is often lacking.

Question

Quizplus · Accepted Answer

This statement does not represent a problem with financial analysis, but rather an benefit, as financial analysis can be used to detect liquidity problems. The other statements represent potential challenges or limitations of financial analysis.

Which of the Following Does Not Represent a Problem with Financial