Which of the following would not be considered a limitation


Which of the following would NOT be considered a limitation of ratio analysis?

A. “Window dressing” techniques can make statements and ratios look better.

B. Different operating and accounting practices can distort comparisons.

C. Ratios standardize numbers and facilitate comparisons.

D. Comparison with industry averages is difficult for a conglomerate firm that operates in many different divisions

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Financial Management: Which of the following would not be considered a limitation
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