Ratio analysis is an important component of evaluating company performance. It can provide great insights into...
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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 represents a weakness or limitation of ratio analysis? Select all that apply. A) Market data is not sufficiently considered. B) Window dressing might be in effect. C) Seasonal factors can distort data. 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 represents a weakness or limitation of ratio analysis? Select all that apply. A) Market data is not sufficiently considered. B) Window dressing might be in effect. C) Seasonal factors can distort data.
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The detailed answer for the above question is provided below C Seasonal factors can distort Data Se... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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