Question
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. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0697789938
