All of These Are Limitations of Financial Ratio Analysis Except

question 54

Multiple Choice

All of these are limitations of financial ratio analysis except:

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

---

Definitions:

Concentration

The measure of the amount of a sub-component (solvent, solute, or gas) in a solution.

Odds

A statistical measure used to express the likelihood of an event occurring, typically presented as the ratio of the event happening to it not happening.

Observational Study

A study in which the researcher observes and records behavior or outcomes without manipulating variables or conditions.

Indicator Variable

A binary variable that takes the value 1 to indicate the presence of a particular feature or condition and 0 to indicate its absence.