Which of the Following Is a Potential Problem of Utilizing

question 41

Multiple Choice

Which of the following is a potential problem of utilizing ratio analysis?

• A) Trends and industry averages are futuristic in nature
• B) Financial data is identical due to price-level changes
• C) Firms within an industry use similar accounting principles and application
• D) Firms within an industry may not use similar accounting methods

---

Definitions:

Audience Understands

The extent to which the recipients of a message grasp its content and significance.

Reinforce Point

The act of emphasizing or strengthening a particular argument or idea within a discussion or presentation.

Expression Of Gratitude

A demonstration of thanks, appreciation, or acknowledgment, often communicated verbally or in writing.

Bad-News Message

Communication that conveys unfortunate, negative, or undesirable information to the recipient.