12) The statement of cash flows provides insight into a firm's operating, investment, and financing cash flows and reconciles them with changes in its cash and marketable securities during the period of concern. A. True B. False 13) The guidelines used to prepare and maintain financial records and reports are known as A. FASB B. IFRS C. GAAP D. IASB Version B 14) Which of the following caution(s) about using ratio analysis is/are TR A. a single ratio always provides sufficient infor ratio always provides sufficient information from which to judge the overall performance of the firm. . the ratios being compared should be calculated using financial statements dated at the same point in time during the year. the financial data being compared should have been developed in different ways. D. both A and C. 13) A simple method for developing a pro forma income statement is the percent-of-sales method However, it does not take into account the fact that some of the firm's expenses will increase with the level of sales while others will not. A. True B. False