Which of These Are Limitations of Financial Analysis

question 4

Multiple Choice

Which of these are limitations of financial analysis?
I. Use of historical data
II. Invalid comparisons
III. Ratio results often contain errors in calculations
IV. Historical cost financial reports are not adjusted for inflation
V. Non-quantitative factors are not considered

• A) I, II, III and IV only
• B) I, II, III and V only
• C) I, II, IV and V only
• D) I, II, III, IV and V

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Definitions:

Embezzlement

The fraudulent appropriation of the property or money of another by a person to whom it has been entrusted.

Fraudulent Appropriation

The illegal use or misallocation of funds or property that belongs to someone else without their authorization, typically with deceitful intent.

Public Order Crime

Crimes that are said to interfere with the operations of society and the ability of people to function efficiently, often involving victimless acts.

Detrimental to Society

Refers to actions or behaviors that are harmful or disadvantageous to the well-being of a community or society.