It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only if all the firms being compared have the same proportion of fixed assets to total assets.”             If you are not agreed with this statement give justification in two sentences

You are an investor trying to determine the total value of a firm's assets (recall that one way to summarize the value of a company is the total value of its assets). Which of the following best describes the true "market value of the firm's assets that you would be looking for as a potential investor seeking to find the value of the firm? A. The assets' total market value is the cost associated with acquiring those assets. B. The assets' total market value can be found by adding up all of the individual asset values on the firm's balance sheet. C. The market value of the firm's assets is the total value the firm could get if it sold all of its tangible assets (machines, buildings, etc.) to the highest bidder. D. The assets' total market value is the present value of all of the cash flows that they can generate within the firm. Both C and D are correct.

To evaluate a company’s performance, investors need a benchmark to which they can compare its financial ratios. What are some of the problems associated with these comparisons?

Which one of the following is violated when a firm has a policy of accelerating the recognition of depreciation expense during good years and decreasing depreciation expense during lean years?     Relevance     Matching     Consistency     Conservatism

How can you debate the benefits and pitfalls of ratio analysis as a stand-alone analysis of a company’s strengths and weaknesses?