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:

Ethnic Groups

Communities or populations sharing a common culture, ancestry, language, or other social characteristics.

Racial Identity

An individual's awareness and experience of being a member of a racial group, including the attitudes, culture, and social perceptions associated with that group.

Cultural Traditions

The shared beliefs, practices, arts, institutions, and behaviors passed down within a society or group, often reflecting values and heritage.

Racial Categorization

The process of classifying people into groups based on physical characteristics, often leading to societal implications and stereotypes.