Although Ratios Can Provide Valuable Information, They Can Also Be

Multiple Choice

Although ratios can provide valuable information, they can also be misleading for which of the following reasons?

A) Ratios are only as reliable as the accounting data on which they are based.
B) Compilation of industry norms often does not report information about the distribution of values.
C) Comparative analysis depends on the availability of data for appropriately defined industries.
D) All of these are correct.