MC Qu$.65$ Identify a true statement about ratio analys...

Identify a true statement about ratio analysis.

Multiple Choice $$

Entrepreneurs must evaluate their firms on all ratio analysis figures to gain a proper understanding of their firms' operational health. $$

A ratio analysis only provides insight into a firm's health when compared over time or to the ratios of other firms. $$

While they are valuable tools, ratio analysis is ultimately less useful than nonfinancial data analysis methods. $$

Because of the large amounts of financial data it requires, a ratio analysis cannot be performed by relatively new entrepreneurial firms.