Business A-Level
limitations of ratios
What limitations of ratios means in Business A-Level, as defined for AQA.
Definition of limitations of ratios
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Reference: AQA
The figures are historic, drawn from accounts prepared under policies that differ between firms, easy to flatter by timing a year end, and silent about brand, staff, the order book and the quality of management.
Topics that use limitations of ratios
- Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis (AQA A-Level)
Related terms
Using limitations of ratios in the exam
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