Multiple Choice
Which of the following is a limitation of ratio analysis?
A) Financial ratios cannot be used to assess a firm's profitability.
B) Ratios that reveal large deviations from the norm merely indicate the possibility of a problem.
C) It is difficult to access audited financial statements for ratio analysis.
D) Ratio analysis assumes that inflation has no effect on a firm's business.
Correct Answer:
Verified
Correct Answer:
Verified
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