Which Statement Is True of Ratio Analysis

Multiple Choice

Which statement is true of ratio analysis:

A) can provide useful information on a firm's current position but should never be used to forecast future performance.
B) can provide useful information on a firm's current position and hint at future performance.
C) can provide useful information on a firm's past but not current position.
D) can provide useful information on a firm's past and current position, but should never be used to forecast future performance.