Question

How does inflation distort ratio analysis comparisons?

Answer 1

Are only balance sheet accounts or both balance sheet accounts and income statement items affected by inflation? ... So the answer is no, inflation can affect income statements, balance sheets, cash flow statements. ... TAGS Finance, Balance Sheet, Ratio Analysis, real time.

Answer 2

B. Are only balance sheet accounts or both balance sheet accounts and income statement items affected by inflation? ... So the answer is no, inflation can affect income statements, balance sheets, cash flow statements. ... TAGS Finance, Balance Sheet, Ratio Analysis, real time.