A company reports accounting data in its financial statements, This data is used for financial analyses that provide insights into a company's strengt: weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company's performance to that its competitors or to its past or expected future performance. Such insight helps managers and analysts improve their decision making. Consider the following scenario: You work as an analyst at a credit-rating agency, and you are comparing firms in the construction and engineering sector. One company in the portfolio of companies you are analyzing is a Chinese firm. This firm stands out in the ratio analysis, because the company's financial ratios are substantially lower than identical financial ratios of the other firms in the sector. You do not dissect the results of the ratio analysis and report this firm as an under-performing company. The ratios provide an accurate and thorough representation of the Chinese company's performance. The analysis Iikely includes incorrect and misleading conclusions. There are several groups of ratios most decision makers and analysts use to examine different aspects of a company's performance. Based on the descriptions of ratios listed, identify the relevant category of ratios. - Ratios that help determine whether a company can access its cash and pay its short-term obligations are calied ratios. - Ratios that help determine the efficiency with which a company manages its day-to-day tasks and assets are called ratios. - Ratios that help assens a company's ability to service the interest and repayment obligations on its long-term debt and the degree to which it uses borrowed versus invested financial capital are called ratios. ratios heip measure a company's ability to generake income and profits based on its invested capital. ratios examine the market value af a company's share price, its pronts and cash dividends, and the book value of the firm's assets and relate them to other datal items to determine how the firm is perceived in the stock market. Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up aga net itself over time and against other players within the industry. However, like many tools and techniques, rotio analysis thas a few limitations and weaknesses. Which of the following statements represent a weakness or limitation of ratio analysis? Check ail that apply A firm's financial starements show only one period of financial data. A firm may operate in mukiple industries. Ditferent firms may use different accounting practices