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Seasonality causes comparability problems in ratio analysis. A common solution is to use an average account balance as opposed to an ending account balance.

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Seasonality causes comparability problems in ratio analysis. A common solution is to use an average account balance as opposed to an ending account balance. TRUE

Ratio analysis is referred to as the take a look at or analysis of the line gadgets present within the economic statements of the enterprise. it could be used to test different factors of a business along with profitability, liquidity, solvency and efficiency of the corporation or the business.

Frequently used in accounting, there are many general ratios used to try and evaluate the general financial situation of a corporation or different employer.

Learn more about ratio analysis here:https://brainly.com/question/28392725
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