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An analyst is reminded that even careful ratio work has boundaries. Financial statement analysis has:

ALegal immunity
BFixed answers
CNo boundaries
DLimitations
Answer & Solution
Correct answer: D. Limitations
1. The tool is useful but not complete. 2. Investment decisions need more than ratios. 3. It has limitations. _Source: OpenStax Principles of Finance 2e, Chapter 6, Measures of Financial Health._
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