Which of the following is a potential problem of utilizing ratio analysis?
A. Trends and industry averages are historical in nature.
B. Financial data may be distorted due to price-level changes.
C. Firms within an industry may not use similar accounting methods.
D. All of the options.
查看答案
Ratios are used to compare different firms in the same industry.
A. 对
B. 错
Financial ratios are used to weigh and evaluate the operational performance of the firm.
A. 对
B. 错
Liquidity ratios indicate how fast a firm can generate cash to pay bills.
A. 对
B. 错
Asset utilization ratios describe how capital is being utilized to buy assets.
A. 对
B. 错