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CTP · Question #731

(Topic 8) Financial ratios may provide an inaccurate forecast of a company's performance because

The correct answer is D. based on snapshots of the company's activity. See the full explanation below for the reasoning.

Question

  • (Topic 8)

Financial ratios may provide an inaccurate forecast of a company's performance because

Options

  • Adifficult to incorporate into statistical forecasting.
  • Beconomic rather than accounting values.
  • Csensitive to seasonal cash flows.
  • Dbased on snapshots of the company's activity.

How the community answered

(23 responses)
  • A
    4% (1)
  • B
    17% (4)
  • C
    4% (1)
  • D
    74% (17)

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