Which of the following is a limitation of ratio analysis?
A) Financial ratios cannot be used to assess a firm's profitability.
B) Ratios that reveal large deviations from the norm merely indicate the possibility of a problem.
C) It is difficult to access audited financial statements for ratio analysis.
D) Ratio analysis assumes that inflation has no effect on a firm's business.
Correct Answer:
Verified
Q87: The current ratio provides a measure of
Q88: The liquidity of a business firm refers
Q90: Which of the following is used to
Q91: Cross-sectional ratio analysis is used to _.
A)
Q94: _ analysis involves the comparison of different
Q97: Time-series analysis is often used to _.
A)
Q106: The liquidity of a business firm is
Q110: The two basic measures of liquidity are
Q114: The _ of a business firm is
Q116: Without adjustment, inflation may tend to cause
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents