Which of the Following Is/are Limitations of Ratio Analysis

question 3

Multiple Choice

Which of the following is/are limitations of ratio analysis?

• A)use of acquisition cost for assets rather than current replacement cost or net realizable value
• B)latitude firms have in selecting from among various generally accepted accounting principles
• C)changes in many ratios correlate with each other
• D)must recognize conditions that have changed between the periods being compared when comparing the size of a ratio between periods for the same firm
• E)all of the above

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A measure of a person's intelligence as indicated by an intelligence test, expressed as a score adjusted for the person's age.

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Actions that allow an individual to adjust effectively to changing conditions or to meet physical, social, or intellectual challenges.

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An outdated and insensitive term for intellectual disability, which is characterized by significant limitations in both intellectual functioning and adaptive behavior.