Which of the Following Is a Limitation of Ratio Analysis

question 111

Multiple Choice

Which of the following is a limitation of ratio analysis?

• A) Financial ratios cannot reveal certain specific aspects of a firm's financial position.
• 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.

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Definitions:

Conditional Expression

In programming, a statement that evaluates to true or false based on specific conditions, directing the flow of control.

Form Control

Elements in a form that allow users to input data, such as buttons, checkboxes, or text fields.

Apostrophe

A punctuation mark used to indicate either possession (e.g., Joe's book) or the omission of letters or numbers (e.g., can't, class of '99).

Comment Line

A programmer's note in the code that is ignored by the compiler or interpreter, used to explain or clarify the code.