All of the Following Statements Are True Regarding Ratios and Forecasts

Multiple Choice

All of the following statements are true regarding ratios and forecasts except:

A) Ratios cannot confirm whether forecast assumptions will turn out to be correct.
B) Ratios can tell whether future sales growth was accurately captured.
C) Ratios cannot tell whether assumptions about future cash flows are realistic.
D) Ratios can tell whether growth rates for sales are consistent with past sales growth performance.