If an analysis is concerned only with certain specific aspects of a firm's financial position, one or two ratios may provide sufficient information from which to make a reasonable judgement.

Question

Quizplus · Accepted Answer

If the analysis is limited to a specific aspect, then one or two relevant ratios can provide adequate information for evaluation. However, if a more comprehensive analysis is required, multiple ratios and other financial indicators will need to be considered.

If an Analysis Is Concerned Only with Certain Specific Aspects