Question

Discuss the limitation of accounting ratio.​

Answer 1

Answer:

Some of the most important limitations of ratio analysis include: ... Therefore, ratio analysis metrics do not necessarily represent future company performance. Inflationary effects: Financial statements are released periodically and, therefore, there are time differences between each release. If inflation.

Answer 2

Answer:

Limitations of Ratio Analysis

Explanation:

Some of the most important limitations of ratio analysis include: ... Therefore, ratio analysis metrics do not necessarily represent future company performance. Inflationary effects: Financial statements are released periodically and, therefore, there are time differences between each release. If inflation.