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The Use of Estimates, Cost, Alternative Accounting Methods, the Presence

Question 183

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The use of estimates, cost, alternative accounting methods, the presence of atypical data, and diversification of firms are all factors that may limit the usefulness of financial statement analysis. Identify a ratio and explain how one or more of the limiting factors can affect the usefulness of that ratio.

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Any of the profitability ratios that inv...

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