Which of the following is NOT a limitation related to the usage of ratios when reviewing a firm's performance?
A) Many firms experience seasonality in their operations.
B) Ratios cannot be used to compare firms that are in the same industry if one firm's sales are higher than another firm's.
C) Some firms operate in a variety of business lines, which makes it difficult to make comparisons.
D) Accounting practices differ widely among firms.
Answer: B
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