Which of these is not considered a limitation of financial ratio analysis?
A) There is no adjustment for the effects of inflation.
B) Ratios are difficult to calculate.
C) It does not consider qualitative factors.
D) All of the above.

Question

Quizplus · Accepted Answer

Ratios are not difficult to calculate as long as the necessary financial information is available. Therefore, option B is not considered a limitation of financial ratio analysis. Options A and C are considered limitations as inflation can distort ratios and qualitative factors can significantly impact a company's financial performance, but may not be captured in the numerical analysis of ratios. Therefore, the correct answer is B.

Which of These Is Not Considered a Limitation of Financial