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Dear expert, Please answer the entire questions and Please, Please, Please, if you are not 100% sure that your answer is absolutely correct, or if you cannot answer all parts of the question correctly, where you can explain every step properly, and clearly. kindly LEAVE the question to someone expert in the topic, to answer everything without mistakes.

1:You would like to compare your firm's cost structure to that of your competitors. However, your competitors are much larger in size than your firm. Which one of these would best enable you to compare costs across your industry?

  1. Common-size balance sheet
  2. Common-size income statement
  3. Pro forma income statement
  4. Pro forma balance sheet
  5. Statement of cash flows

2:Ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as:

  1. market value ratios.
  2. profitability ratios.
  3. liquidity measures.
  4. long-term solvency measures.
  5. asset management ratios.

3:Ratios that measure a firm's financial leverage are known as ________ ratios.

  1. asset management
  2. long-term solvency
  3. short-term solvency
  4. market value
  5. profitability

4:Ratios that measure how efficiently a firm uses its assets to generate sales are known as ________ ratios.

  1. market value
  2. short-term solvency
  3. asset management
  4. long-term solvency
  5. profitability

5:Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as ________ ratios.

  1. asset management
  2. profitability
  3. market value
  4. long-term solvency
  5. short-term solvency

6:The financial ratio that measures the accounting profit per dollar of book equity is referred to as the:

  1. return on equity.
  2. market profit-to-book ratio.
  3. equity turnover.
  4. profit margin.
  5. price-earnings ratio.

7:The amount that investors are willing to pay for each dollar of annual earnings is reflected in the:

  1. price-earnings ratio.
  2. DuPont identity.
  3. debt-equity ratio.
  4. return on equity.
  5. return on assets.

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