Which of the following is a limitation of ratio analysis?
A) Financial ratios cannot reveal certain specific aspects of a firm's financial position.
B) Ratios that reveal large deviations from the norm merely indicate the possibility of a problem.
C) It is difficult to access audited financial statements for ratio analysis.
D) Ratio analysis assumes that inflation has no effect on a firm's business.
Correct Answer:
Verified
Q84: The use of the unaudited financial statements
Q85: An analyst should be careful when conducting
Q86: In ratio analysis, the financial statements being
Q87: Market ratios only measure the risk.
Q88: The primary concern of creditors when assessing
Q90: Which of the following is used to
Q91: Cross-sectional ratio analysis is used to _.
A)
Q92: The liquidity of a firm is measured
Q93: The use of differing accounting treatments-especially relative
Q94: _ analysis involves the comparison of different
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