Which of the following statements about your analysis report is true?

The analysis likely includes incorrect and misleading conclusions.

The ratios provide an accurate and thorough representation of the Chinese company$$s performance.

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 debts that mature in less than a year are calleddividend policy ratios.

$$ These ratios, which help determine how efficiently a firm is using its assets to generate sales are called ratios.

$$ Ratios that help assess a company$$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.

$$ ratios help measure a company$$s ability to generate income and profits based on its invested capital.

$$ ratios examine the market value of a company$$s share price, its profits and cash dividends, and the book value of the firm$$s assets and relate them to other data 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 against itself over time and against other players within the industry.

However, like many tools and techniques, ratio analysis has a few limitations and weaknesses.

Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply.

A firm may operate in multiple industries.

Different firms may use different accounting practices.

A firm$$s financial statements show only one period of financial data.