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

Ratio analysis is useful in financial analysis

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Ratio analysis is helpful in communication and coordination

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Ratio Analysis is not helpful in identifying weak spots of the business

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Ratio Analysis is helpful in financial planning and forecasting

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Solution

The correct option is C
Ratio Analysis is not helpful in identifying weak spots of the business

Ratio Analysis is helpful in identifying weak spots of the business.

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Similar questions

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.

State which of them are true?
A) When ratios of previous years are compared with current years, they are called trend ratios.
B) Trend percentages and trend ratios are used in static analysis.
C) Reliability of financial analysis depends upon the reliability of financial data.

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

The correct option is C Ratio Analysis is not helpful in identifying weak spots of the business Ratio Analysis is helpful in identifying weak spots of the business.

The correct option is C
Ratio Analysis is not helpful in identifying weak spots of the business

Ratio Analysis is helpful in identifying weak spots of the business.