Which of the following statements about financial statement analysis is(are) most correct?
The current ratio measures liquidity.
Du Pont analysis is based on the fact that return on equity (ROE) can be expressed as the sum of three other ratios (Ratio 1 + Ratio 2 + Ratio 3).
It is relatively easy to interpret a ratio in the absence of comparative and trend data.
Answers (a) and (b) are correct.
Answers (a), (b), and (c) are correct.