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

Question

Quizplus · Accepted Answer

Ratios are generally easy to calculate using financial statements, so it is not considered a limitation of financial ratio analysis. The limitations include not considering qualitative factors, not adjusting for the effects of inflation, using historical data that may not represent current or future conditions accurately, and relying on accounting practices that may not reflect economic realities.

Which of These Is Not Considered a Limitation of Financial