Limitations of Ratio Analysis

Q.  Which of the following are limitations of ratio analysis?

A) Ratio analysis may result in false results if variations in price levels are not considered.
B) Ratio analysis ignores qualitative factors.
C) Ratio Analysis ignores quantitative factors.
D) Ratio Analysis is historical analysis.
- Published on 04 Sep 15

a. A, B and D
b. A, C and D
c. A, B and C
d. A, B, C, D

ANSWER: A, B and D

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