All of these are limitations of financial ratio analysis except:
A) suitable yardsticks may not be available with which to compare results.
B) excessive information disclosed in company annual reports.
C) year-end data is not necessarily typical of the position during the year.
D) it is past performance that is being analysed.

Question

Quizplus · Accepted Answer

Excessive information disclosed in company annual reports is not a limitation of financial ratio analysis, but rather an advantage as it provides the necessary data to perform the analysis. The other three options are valid limitations of financial ratio analysis.

All of These Are Limitations of Financial Ratio Analysis Except