Correct Answer: None of the above

Solution : Answer = None of the above

False accounting data can lead to inaccurate ratios, misrepresenting a company's financial position and performance. Comparison becomes challenging when firms use varied accounting policies, as it distorts financial data consistency, hindering accurate assessments of performance and financial position across companies. Price level changes can indeed enhance the effectiveness of ratio analysis by allowing adjustments to reflect inflation or deflation impacts, thereby providing a more accurate evaluation of a company's financial status and performance.
Hence, the correct option is 4.