Multiple Choice
All of these are limitations of financial ratio analysis except:
A) Year-end data is not necessarily typical of the position during the year
B) It is past performance that is being analysed
C) Suitable yardsticks may not be available with which to compare results
D) Excessive information disclosed in company annual reports
Correct Answer:

Verified
Correct Answer:
Verified
Q13: Profit less income tax,divided by revenue,is the
Q14: If the debt ratio is 54% the
Q15: An increase in the inventory turnover ratio
Q16: The statement relating to the debt ratio
Q17: When calculating the quick acid test)ratio which
Q19: All of these ratios are indicators of
Q20: Financial statements in which each item is
Q21: Financial stability refers to the ability of
Q22: A high dividend payout ratio means that
Q23: Cash flows from operating activities divided by