Which of the Following Is/are Limitations of Ratio Analysis

Multiple Choice

Which of the following is/are limitations of ratio analysis?

A) use of acquisition cost for assets rather than current replacement cost or net realizable value
B) latitude firms have in selecting from among various generally accepted accounting principles
C) changes in many ratios correlate with each other
D) must recognize conditions that have changed between the periods being compared when comparing the size of a ratio between periods for the same firm
E) all of the above