Which of the Following Are Limitations of Financial Analysis

question 24

Multiple Choice

Which of the following are limitations of financial analysis?
I The past is an imperfect guide to the future.
II Effects of inflation are not considered.
III Changes in accounting policies are not highlighted.
IV Use of different accounting methods across entities makes comparability difficult.

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

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Definitions:

Radioactive Glucose

A form of glucose labeled with a radioactive isotope, used in medical imaging to track metabolic processes.

Positron Emission Tomography

A diagnostic imaging test that uses a radioactive substance to visualize and measure changes in metabolic processes and other physiological activities within the body.

Electroencephalography

A medical imaging technique that records the electrical activity of the brain.

Functional Magnetic Resonance

An imaging technique used to measure and map brain activity by detecting changes associated with blood flow.