Which of the following statements are not true about ratio analysis? (2024)

Q. Which of the following statements are true about Ratio analysis?
a. Ratio analysis is useful in financial analysis.
b. Ratio analysis is helpful in communication and coordination.
c. Ratio analysis is not helpful in identifying weak spots of the business.
d. Ratio analysis is helpful in financial planning and forecasting.

Q. Financial Analysis does not help the users of the financial statements to understand the complicated matters in simplified manner.

Q. Which of the following are limitations of ratio analysis?
a. Ratio analysis may result in false result if variation in price levels are not considered.
b. Ratio analysis ignores qualitative factors.
c. Ratio analysis ignores quantitative factors.
d. Ratio analysis is historical analysis

Q. Assertion :Ratio analysis is one of the tools employed to know the financial health of a concern. Reason: Ratio analysis is not the only technique available to take investment decision.