Limitation of ratio analysis

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Reference no: EM131449487

Which of the following statements is not a limitation of ratio analysis?

a. There are an insufficient number of ratios available.

b. Seasonal factors can distort ratios.

c. Different organizations can use different, but allowed under generally accepted accounting principles (GAAP), accounting conventions.

d. It often is hard to tell whether a given ratio is “good” or “bad.”

e. Inflation effects can distort ratios

Reference no: EM131449487

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