Which of the following statements is not correct? (a) A ratio reflects a business model relationship between two or more variables. (b) When using comparative ratio analysis, it is important to...

Which of the following statements is not correct? (a) A ratio reflects a business model relationship between two or more variables. (b) When using comparative ratio analysis, it is important to remember that the causal relationship behind a certain value of a ratio may not apply similarly to the two different entities. (c) Ratio analysis is rarely used for interpreting financial statements. (d) A ratio calculation is generally the first step in an investigative research to get to the root cause of the situation described by the financial statements.