Which of These Is Not a Limitation of Ratio Analysis

question 38

Multiple Choice

Which of these is not a limitation of ratio analysis?

• A)Different accounting methods used by competitors.
• B)Firms of different size cannot be compared.
• C)One ratio is not enough information to make an overall judgement.
• D)All are limitations.

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Definitions:

Polluters

Entities that release pollutants or contaminants into the environment, causing harm to ecosystems and human health.

Carbon Footprint

The total amount of greenhouse gases emitted by an individual, organization, event, or product, usually expressed in equivalent tons of carbon dioxide (CO2).

Hybrid Automobiles

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, using energy stored in batteries.

Green Consumers

Individuals who prefer to buy products and services that are environmentally friendly and produced in a sustainable manner.