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What is the most problematic issue with the typical method of using average balances (the mean of the beginning and ending balances for the year)

What is the most problematic issue with the typical method of using average balances (the mean of the beginning and ending balances for the year) when calculating financial ratios?

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A. companies typically have their lowest values on those dates

B. companies typically have their highest values on those dates

C. the beginning and ending balances in a given year are typically the same value

D. the two data points are from the same seasonal time of year

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