Which of the following is a limitation of ratio analysis?
A.
Ratio analysis assumes that in...
Which of the following is a limitation of ratio analysis?
A.
Ratio analysis assumes that inflation has no effect on a firm's business.
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.
Financial ratios cannot reveal certain specific aspects of a firm's financial position.
Answers: 3
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