Which of the Following Is a Limitation Related to the Usage

question 78

Multiple Choice

Which of the following is a limitation related to the usage of ratios when reviewing a firm's performance?

• A) Ratios reveal differences in policy and performance between years.
• B) Ratios can be used to compare firms that are in the same industry if one firm's sales are higher than another firm's.
• C) Financial ratios are designed for the use of creditors, not for managers.
• D) Different accounting practices between firms can distort comparisons.

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Definitions:

Gratitude

Gratitude is the feeling of appreciation or thanks towards people, situations, or experiences that contribute positively to one’s life.

Negative Emotions

Feelings that are generally considered to be harmful or unpleasant, such as sadness, anger, and fear, which can impact mental health and relationships.

Hunger

The physical sensation or condition experienced due to the lack of food, often driving the need or desire to eat.

Anger

An intense emotional response to perceived provocation, frustration, or injustice.