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:

Distributed

In the context of computing and systems theory, refers to processes, information, or resources that are spread out across multiple locations or nodes in a network.

Emerson

Ralph Waldo Emerson, an American essayist, lecturer, philosopher, and poet who led the transcendentalist movement of the mid-19th century.

Exchange Network

A social structure involving the exchange of resources, goods, or services among individuals or groups.

Particularistic Values

Values that are unique to specific cultures, groups, or contexts, as opposed to universal values that are believed to be applicable to all societies.