this is the correct answer.

Consider the following statements: Statement 1. Ratio analysis may not present an accurate picture if the companies being compared use diff erent accounting policies. Statement 2. Economic situations or company losses can cause some ratios to lose their meaning. Which is correct? Select one: a. Only statement 1 is correct x b. Both statements are correct c. Only statement 2 is correct d. Neither of the statements is correct Your answer is incorrect. Explanation: Ratio analysis may not present an accurate picture if the companies being compared use different accounting policies, or if one follows ASPE while another follows IFRS. Economic situations or company losses can cause some ratios to lose their meaning. A closer look at the cause of a loss, in addition to ratio analysis, may be beneficial. The correct answer is: Both statements are correct