Ratio analysis, which compares a company to an industry, is complicated because:
A)reliable industry data is not readily accessible.
B)the accounting conventions between companies may be dissimilar.
C)large companies are diversified across several industries.
D)More than one of the above

Question

Quizplus · Accepted Answer

The accounting conventions between companies may be dissimilar, and large companies are diversified across several industries. Also, some industry data may not be readily accessible, due to proprietary processes and operations.

Ratio Analysis, Which Compares a Company to an Industry, Is