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Which of the following is a limitation of Ratio Analysis? a) Financial ratios cannot be used to assess a firm'sprofitability. b) Ratio analysis assumes that

Which of the following is a limitation of Ratio Analysis?

a) Financial ratios cannot be used to assess a firm'sprofitability.

b) Ratio analysis assumes that inflation has no effect on afirm's business.

c) Ratios that reveal large deviations from the norm mererlyindicate the possibility of a problem.

d) it is difficult to access audited financial statements forratio analysis.

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