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One Problem with Ratio Analysis Is That Relationships Can Be

question 96

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One problem with ratio analysis is that relationships can be manipulated.For example, we know that if our current ratio is less than 1.0, then using some of our cash to pay off some of our current liabilities would cause the current ratio to increase and thus make the firm look stronger.

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Definitions:

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

Violent Behavior

Acts characterized by physical force with the intent to harm, damage, or violate another being or object.

Helping Process

A systematic series of actions directed towards providing assistance or support to others.

Assessment Phase

The initial stage in various professional and therapeutic processes where the situation, needs, or conditions of an individual or group are evaluated.

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