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Which of the following are limitations of ratio analysis as a technique of financial statement analysis: a. Ratios only indicate potential problem areas; they do
Which of the following are limitations of ratio analysis as a technique of financial statement analysis:
a. | Ratios only indicate potential problem areas; they do not identify causes of problems. | |
b. | A good financial analyst must select the set of ratios that is most appropriate for the type of firm being analyzed. | |
c. | Ratios do not provide absolute measures for evaluation; rather they must be analyzed against some standard. | |
d. | All of the above are limitations of ratio analysis as a technique of financial statement analysis. |
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