Which of These Is a Limitation of Financial Ratio Analysis

question 35

Multiple Choice

Which of these is a limitation of financial ratio analysis?

• A) Year-end data is not necessarily typical of the position during the year.
• B) Suitable yardsticks for comparisons are not always available.
• C) Ratios have a restricted vision as they only assess the past.
• D) All of the above.

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Definitions:

Fetus Viability

The point in pregnancy at which a fetus possesses the capacity to survive outside the uterus, generally considered to be around 24 weeks of gestational age.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Emergency Contraception

Methods of preventing pregnancy after unprotected sexual intercourse, such as morning-after pills or certain intrauterine devices.

Rational Autonomy

The capacity to make informed, un-coerced decisions based on reason and understanding.