All of the Following Are Limitations of Financial Ratio Analysis

question 10

Multiple Choice

All of the following are limitations of financial ratio analysis except for:

• A) suitable yardsticks may not be available with which to compare results.
• B) year-end data is not necessarily typical of the position during the year.
• C) excessive information is being disclosed in company annual reports.
• D) it is the past performance that is being analysed.

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Definitions:

Confidential Issues

Matters that require protection due to their sensitive nature, involving secrecy and privacy.

Distributing Handouts

The process of giving out educational materials or information to participants or members of an audience.

Pronunciation

The way in which a word is spoken, reflecting regional or national variations in language.

Verbal Fillers

Words or phrases, often with little meaning, used to fill pauses during speech, such as "um," "like," or "you know."