Which of the following limitation in using ratio analysis best describes the following statement: “In 20X3, the firm acquired a new line of business which has a very different revenue and cost structure. This makes it difficult to compare the firm’s profitability margins from 20X1 to 20X3.”?   Question 5 options:   1)  The company operates in many different businesses.   2)  The accounting practices adopted by the firm.   3)  Possible window dressing practices.   4)  The effects of inflation.

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A: Explanation and answer is given below,

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A: Given:

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A:

Q: Which of the following statements is true?

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