Monday 11 June 2012

Which of the following is not a reason why financial analysts use ratio analysis?

Which of the following is not a reason why financial analysts use ratio analysis?
a.      Ratios help to pinpoint a firm’s strengths.
b.           Ratios restate accounting data in relative terms.
c.      Ratios are ideal for smoothing out the differences that may exist when comparing firms that use different accounting practices.
d.      Some of a firm’s weaknesses can be identified through the usage of ratios.
 

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