Which of the Following Is NOT a Limitation Related to the Usage

question 34

Multiple Choice

Which of the following is NOT a limitation related to the usage of ratios when reviewing a firm's performance?

• A)Many firms experience seasonality in their operations.
• B)Ratios cannot be used to compare firms that are in the same industry if one firm's sales are higher than another firm's.
• C)Some firms operate in a variety of business lines,which makes it difficult to make comparisons.
• D)Accounting practices differ widely among firms.