Which is wrong about the use of financial statement analysis? a. Seasonality factors may contribute to a sort of distortion on the financial ratio’s trends. b. Activity ratios, such as profit margin and return on asset, tells how efficient the company uses its resources and assets c. Horizontal analysis of financial statements is conducted by analyzing inter-period financial statements d. The Liquidity of the company can be determined using acid-test ratio and current ratio

Describe and justify why you would use the following ratios as an analyst to evaluate the performance of a company. Profitability Ratios Liquidity Ratios Gearing Ratios Investment Ratios

Which of the following is NOT correct about the financial ratios? Select one:a. Financial ratios are based on the estimated values of balance sheet and income statement accounts.b. Financial ratios can be viewed as equalizers, allowing for relative comparisons to be made. c. Financial ratios are one of an analyst’s most powerful tools, converting financial statement information into a form that is easier to analyze.d. The examination of financial ratios provides insights into how a firm has performed historically and how it is performing relative to its competitors and its industry.

Which of the following is not one of the typical uses of financial ratios? a. Comparisons to a company’s historic values b. Comparison to benchmarksc. Comparison to competitors’ values d. Comparison to zero with positive values indicating desirable ratios and negative values indicating undesirable ratios.

what is the correct match to this terminlogy

True or False   A ratio that can be useful in analyzing a company's cash and liquidity is the operating cash flow ratio.

Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in financial statements? O liquidity O operating O activity O profitability

On an income statement, can a company report total revenues instead of net sales? Are these the same thing?

When you are interpreting financial ratios, it is useful to compare a company's ratios to some form of standard. Group of answer choices True False

The following sentence should be explained: The balance sheet is a snapshot of a company's financial condition at a certain moment in time, while the income statement is a long-term view of a company's financial performance.