Multiple Choice
Which of the following is a limitation related to the usage of ratios when reviewing a firm's performance?
A) Ratios reveal differences in policy and performance between years.
B) Ratios can be used to compare firms that are in the same industry if one firm's sales are higher than another firm's.
C) Financial ratios are designed for the use of creditors, not for managers.
D) Different accounting practices between firms can distort comparisons.
Correct Answer:
Verified
Correct Answer:
Verified
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