M7-Financial Ratios

Question 1

Liquidity ratios and coverage ratios focus on balance sheet account balances. (true or false)

Answer 1

true

Question 2

The statement of retained earnings is primarily a reconciliation of the retained earnings account. (true or false)

Answer 2

true

Question 3

The statement of cash flows assesses cash inflows and cash outflows. (true or false)

Answer 3

true

Question 4

The income statement information is primarily used for profitability analysis. (true or false)

Answer 4

true