Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

Which statement identifies a limitation of accounting ratios?

  • Athey do not aid comparison with the business’s past performance
  • Bthey do not help with future decision making
  • Cthey do not help with inter-firm comparisons
  • Dthey do not take account of qualitative factors

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